The Tunisian presidency announced yesterday evening that President Kais Saied informed the Managing Director of the International Monetary Fund, Kristalina Georgieva, that the fund's conditions for providing financial support to his country threaten to incite civil disturbances.
Saied stated in a presidential statement that "the IMF's prescriptions for providing financial support to Tunisia are unacceptable, as they will affect civil peace, which has no price." These remarks came during a meeting with Georgieva in Paris, on the sidelines of a financing summit held on Thursday evening, according to the Tunisian presidency.
Tunisian negotiations with the IMF regarding a rescue package have been stalled for months, with little indication that Saied is prepared to agree to the necessary steps to reach an agreement that would help the country avoid a financial crisis. Without securing a loan, Tunisia faces a significant crisis in its balance of payments. While most debts are domestic, there are external loan payments due later this year, and credit rating agencies have indicated that the country could default.
Saied reiterated that any required cuts in subsidies, primarily in energy and food, could have harmful repercussions on the country, referencing deadly riots that occurred in Tunisia in 1983 following the announcement of subsidy cuts on grain and its derivatives. Saied affirmed that "he will not accept a single drop of blood to be shed," adding that Georgieva welcomed his invitation to visit Tunisia at an unspecified later date.
