The International Monetary Fund has assured that it remains ready to provide its technical expertise to Tunisia, which is in the grip of a serious political crisis which has not however prevented the allocation to Tunis of special drawing rights representing 744.1 million euros. Dollars.
The IMF issued on August 23, 2021 a Special Drawing Rights (SDR) allocation totaling $ 650 billion to increase the liquidity of its member countries in the context of the Covid-19 pandemic. These SDRs are granted to each country in proportion to their quota. Countries can sell or buy them to increase their reserves, repay a loan, etc.
“We had technical discussions with the authorities on their economic reform program,” said an IMF spokesperson. “We are continuing our engagement on technical issues,” she said. “Like any other IMF member country, Tunisia has received its allocation of special drawing rights in proportion to its quota.”
“We are closely following the evolution of the situation in Tunisia”, which “continues to face extraordinary socio-economic pressures, in particular due to the Covid-19 pandemic”, continued the spokesperson for the Fund, however refusing to comment on the crisis.
On July 25, 2021, President Kais Saied granted himself full powers in Tunisia by invoking an article of the constitution which envisages exceptional measures in the event of “imminent danger” to national security. The very next day, the rating agency Fitch stressed that the political unrest in Tunisia risked further delaying the obtaining of financing from the IMF.
Save lives and stabilize the economy
Tunisia must repay 4.5 billion euros over the current year. Before this political crisis, it already needed an extension of 5.7 billion euros to complete its 2021 budget.
For the IMF, on the socio-economic level, “the immediate priority is to save lives, the means and stabilizing the economy. Economic policy should also focus on restoring fiscal and public debt sustainability and promoting inclusive and private sector-led growth. “
A Tunisian delegation traveled to Washington in early May for “technical discussions”. The IMF then reviewed the details of the plan provided by the Tunisian government in exchange for a request for
According to documents from the Tunisian government at the time, one of the flagship measures was to replace price subsidies for basic necessities with direct aid to families.
