Repercussions of IMF loan on Tunisians

International Monetary Fund (IMF) announced that it reached an agreement with Tunisian authorities to grant a loan of US$1.9 billion for a period of 48 months as support for the country’s economic policies. The loan is subject to the approval of the IMF Executive Board, scheduled to discuss Tunisia’s request on December.

This agreement is part of Extended Fund Facility (EFF) mechanism that aims to restore macroeconomic stability, enhance social security and fiscal justice, intensify reforms to establish a favorable climate for achieving inclusive growth and sustainable job opportunities.

Najla Bouden’s government had launched official negotiations with IMF in order to obtain an agreement worth $4 billion that Tunisia needs to finance its budget deficit in exchange for economic reforms that include reducing and subsidizing energy and food, implementing a hiring freeze in the government sector, as well as restructuring governmental institutions.