Title: EU Ready to Lend Tunisia One Billion Dollars, but with Conditions

A European Union official stated on Monday that "the bloc can still lend Tunisia 900 million euros (one billion dollars), but further discussions will take place in the third quarter, depending on reaching an agreement with the International Monetary Fund." Talks regarding Tunisia receiving a loan of 1.9 billion dollars from the IMF have stalled since October after President Kais Saied rejected conditions that included cutting subsidies and reducing public sector wage bills. The official involved in the negotiations said, "Large assistance is still on the table, but this requires meeting the IMF's conditions," adding, "Tunisia claims it may not need an agreement with the IMF, so we will see in the third quarter." Tunisia is on the brink of a significant debt crisis and is facing shortages of essential goods. Most of the debt is domestic; however, there are payments due later this year to repay external loans. Credit rating agencies have indicated that "Tunisia may default on its debts."