According to a source at Central Bank of Tunisia, the formal talks between Tunisia and the International Monetary Fund are set to begin Monday. The goal is to establish a credit line that will be used to support the economy of North Africa’s slowing economy.
The Washington-based international financial institution team is expected to arrive in Tunis on Monday.
During talks, the parties will determine the amount of credit facility. Last month, the North African country mentioned a $4 billion loan from IMF.
The pandemic has severely affected the country’s economy. The deficit in the national 2022-2023 budget is over $2 billion.
The political crisis is the backdrop for the talks. The IMF requested that President Kais Saied’s government submit a list of reforms. The reforms are rejected by the country’s most powerful labor union, UGTT.
The union claims that reforms will make the economic situation worse and more painful. The UGTT accuses the IMF of wanting to rule Tunisia.
Source: north africa post