IMF loan will help address Tunisia's crisis

Significance

The loan is especially critical because Tunisia is struggling with a rising debt burden and a shortage of foreign currency, while inflation is rising and foreign investors, plus ordinary Tunisians, are leaving the country. Its persistent failure to implement structural reforms is contributing to the IMF's hesitation.

Impacts

• Exporters may benefit to a limited degree from the depreciation of the dinar and improved liquidity from an IMF loan.
• Foreign investment is unlikely to revive as Tunisia faces political turmoil and business elites retain their hold over the economy.
• If Tunisia’s business elite block IMF reforms, the structural problems that have weighed on the economy will persist.