September 19, 2021

Dubai Week

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Oil is declining due to Chinese data

Tunisia fears setbacks in talks with the International Monetary Fund

For more than a month, with the inconsistency of the new prime minister’s announcement and the assurances of donor financial institutions about a clearly defined economic and social plan, Tunisian officials are fearful of stumbling into a relationship with him. The International Monetary Fund, which provided significant financial assistance between 2016 and 2020, was valued at $ 2.8 billion, excluding the impact of his decisions on other donors.
These concerns are due to the ambiguity of the relationship between Tunisia and the IMF following talks launched by the Hisham al-Mashishi government at the end of last May, during which particularly structural economic reforms were promised. Subsidy system and public sector pay block.
The talks were initially halted after the IMF demanded the involvement of social parties in the government’s pledges, but were halted after July 25 (last July) following the removal of the Tunisian president’s prime minister and the shutdown of parliament and adoption. Exceptional measures in managing public affairs.
The fund’s director general, Kristalina Georgieva, said a few days ago that Trunisia would be in the 775.8 million range. The dollars that will help fill a large gap in Tunisia’s budget in the current financial year, however, will not be enough to deal with the severe financial crisis.
The state budget for the current year is expected to raise 18.5 billion dinars ($ 6.85 billion) in financial resources, with internal debt divided into 5.6 billion dinars and external borrowing not less than 13 billion dinars.
Tunisian financial and economist Azetin Seiden believes that Tunisia needs urgent funding to reduce the huge fiscal gap in the 2021 budget, especially after rising international oil prices and a budget far from realistic expectations, which does not accept a reference price of more than $ 45 per barrel. , Which is a price not comparable to the prices currently in circulation.
According to many economic and financial experts, doubts are swirling about the relationship between the government and finance, especially the agreement to provide Tunisia with the funding it needs to deal with the known financial crisis. The government announced a request for a $ 4 billion financial loan a few months ago, but the uncertainty of the political situation could raise officials’ concerns over the IMF and surprise the new government. , Subject to the instructions of the President of the Republic, to fulfill its financial obligations, especially if the person chosen by the President of the Tunisian Government is financially incapable of dealing with a difficult financial situation.

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