IMF Postpones Meeting On Tunisia Loan, New Finance Law Not Yet Ready
Date
12/14/2022 11:29:25 PM
(MENAFN- The Peninsula) Reuters
TUNIS: The International Monetary Fund has postponed its board meeting on a loan program for Tunisia that was scheduled for December 19 to give the authorities more time to finalize it, a government official told Reuters on Wednesday.
He added that Tunisia intends to re-present the file of the reform program when IMF meetings resume in January 2023.
The Fund on Wednesday removed a discussion of the Tunisia program from its agenda, a step likely linked to the fact that 2023 budget, which includes reforms, is not yet ready.
Read Also pfizer to sell paxlovid in china as covid cases surge us to remove some chinese entities from red flag list soon, us official says bankrupt sri lanka clears budget as imf bailout delays
Tunisia has reached a staff-level agreement with the IMF for a $1.9 billion rescue package in exchange for unpopular reforms, including cutting food and energy subsidies, and reforming public companies.
The country has been in urgent need of international help for months as it grapples with a crisis in public finances that has raised fears it may default on debt and has contributed to shortages of food and fuel, according to government critics.
The staff-level agreement is for a 48-month package through the IMF's extended fund facility to restore macroeconomic stability, strengthen social safety nets and tax equity and bring reforms that would foster growth and create jobs.
Tunisia's economy had already been badly buffeted for years as political uncertainty and militant attacks hit its crucial tourism sector even before fresh challenges from the COVID-19 pandemic and global commodities squeeze from the Ukraine war.
Business and financial sources said that next year's budget is widely expected to include austerity measures, tax hikes for professions such as lawyers and accountants, wealth taxes, and spending cuts.
MENAFN14122022000063011010ID1105311472
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.