Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), confirmed today, Thursday, that Tunisia has not put forward any new proposals for the delayed loan program with the fund worth $1.9 billion. He stated that the country needs to eliminate subsidies which are burdensome and do not provide social justice.
Azour added in a press briefing during the annual meetings of the IMF and the World Bank in Marrakech, Morocco, that such subsidies need to undergo changes before the IMF board can approve a preliminary agreement at the expert level for Tunisia. Azour pointed out that "fuel subsidies, for example, primarily benefit wealthy Tunisians and represent a financial burden amid rising oil prices," stressing that "reforming the public subsidy system would free up more resources to finance financial inclusion and support social stability."
Azour indicated that a new IMF mission will visit Tunisia to meet with authorities and assess the latest economic developments, but he did not provide details on the timing. The waiting period for the approval of the IMF loan program for Tunisia has extended for more than a year.
