Tunisia expects deal on IMF loan in weeks, Central Bank governor says
Tunisia anticipates striking an agreement with the International Monetary Fund on a credit of between US$2 billion and US$4 billion over three years in the following weeks, according to the central bank governor on Sunday.
“The magnitude is still being negotiated, but I believe it will range betweenUS$2 billion and US$4 billion,” Marouan Abbasi told Reuters. “We aim to achieve a staff level agreement in the next weeks.”
Last week, the authorities and the influential UGTT union agreed to raise public sector salaries by 5%, potentially easing social tensions. They did not, however, declare any additional agreement on reforms required for an IMF bailout.
According to Abbasi, the pay agreement is a crucial step toward talks with the IMF. It will provide a clear picture of salaries’ weight in GDP in the coming years.
The pay deal, according to Abbasi, is a critical step in discussions with the IMF and will provide an accurate picture of wages’ weight in GDP going forward. As per Fitch Ratings, Tunisia’s wage accord increases the possibility of an IMF settlement.
As stated by Abbasi, the potential agreement will open the door to bilateral finance, notably with Gulf countries and Japan.”We have progressed bilateral finance talks with Saudi Arabia,” he said. Read More…
