Tunisia reached an agreement with the IMF in October for a $1.9bn bailout, but final ratification by the lender’s board was delayed over concerns that President Saied did not support the deal and that reforms, such as subsidy reductions, would not be implemented. “Regarding the IMF, the diktats that come from abroad and cause only more impoverishment are rejected,” Saied said on Thursday. “The alternative is that we must rely on ourselves.” James Swanston, an economist at Capital Economics, a London-based consultancy, said the rejection meant that “support that is desperately needed by the economy will not be coming”. He added that without the IMF loan, and as foreign reserves dwindled, “there was a greater risk of a sharp and disorderly fall in the value of the dinar”, the Tunisian currency. Since last year, the government has struggled to find foreign currency to pay for crucial imports such as sugar, flour, coffee and oil resulting in frequent shortages. Saied has insisted repeatedly that corruption, hoarding and market manipulation were to blame for the country’s economic woes.
More Stories
The Challenges Facing the New Leader of Africa’s Largest Economy are Simply Enormous
Understanding the Opinions of Africa’s Rising Generation
SA Reserve Bank Concerned about the Rand’s Recent Meltdown and Persistent Price Pressures
Africa’s Banking Sector Celebrates
ICYMI Sam Altman Made a Stop in Lagos
Is African Debt as Perilous as Foreign Lenders Assume?
Accra’s IPPs Threaten Shutdown Over Non-Payment
DRC To Change the Way it Does Business with China
Maputo Picks a Partner for its Hydro Plans
Results of the Kenya Small Firm Diaries study in Nairobi
Africa Day this Year Marks 60 Years since the Founding of the Organisation of African Unity
Zimbabwe Retailers Head to the Streets