IMF will strike a fine balance on Tunisian reforms

Significance

Kooli was in Washington to advance talks for a new IMF programme. Tunis has requested a multi-year USD4bn credit arrangement, on top of a USD745mn Rapid Financing Instrument that the lender approved in April 2020 to help Tunisia battle the COVID-19 crisis.

Impacts

• Securing a new deal with the IMF will be the government's highest policy priority.
• The government will focus on operationalising a new unit to centralise the management and restructuring of SOEs, which pose debt risks.
• To demonstrate commitment to reforms, the government will set in motion plans to phase out energy subsidies beginning late this year.