France will grant a loan of 200 million euros to Tunisia, which is going through a deep economic crisis aggravated by the war in Ukraine, President Emmanuel Macron announced this Saturday to his Tunisian counterpart, Kaïs Saïed.
The French head of state also welcomed the “open and constructive dialogue between the government and the International Monetary Fund (IMF), hoping that it will lead to a final agreement.”
Since the 2011 revolution, Tunisia has been plunged into economic difficulties, exacerbated by the Covid-19 pandemic, with slow growth and very high unemployment.
Suffocated by your debt
Russia’s invasion of Ukraine in February accentuated the crisis in a country highly dependent on imports of grain and fuel, two sectors where prices soar.
Asphyxiated by a debt of more than 100% of the Gross Domestic Product (GDP), Tunisia obtained in mid-October an agreement in principle from the IMF for a new loan of some two billion dollars disbursable in installments starting in December.
In return, the government promised to carry out reforms, including a gradual lifting of state subsidies for basic products (food and energy) and a restructuring of public companies that have monopolies in many sectors.
Emmanuel Macron also discussed with his Tunisian counterpart the political situation in Tunisia, recalling that “fundamental freedoms” were “intrinsic” to the “democratic heritage” in Tunisia at a time when NGOs denounced a democratic decline since the coup d’état imposed by President Saïed in July 2021.
Mr. Saïed, who monopolized all powers, promulgated a voting system that considerably reduces the role of the political parties that will participate in the legislative elections on December 17.
Source: BFM TV
