The FMI Comes to approve the disbursement of 257.3 million dollars in the framework of a loan agreement to the Tunisia, in the framework of a comprehensive program of $2.9 billion adopted in May 2016. The Fund is said including “satisfied” of the Finance Act 2018.
Relief to Tunis. The Board of Directors of the International Monetary Fund (IMF) approved on 23 March 2018 the disbursement of 257.3 million corresponding to the third tranche of a loan agreement of $2.9 billion (called expanded mechanism of credit), granted to Tunisia in May 2016 in consideration of a program of economic reforms. The total funding provided to Tunisia in this framework reached 919 million dollars.
“Reverse the reform is not an option”
“This means that the Board of Directors is delivered in a satisfactory manner to the implementation of a number of crucial decisions,” says Robert Blotevogel, Resident Representative of the IMF in Tunisia. While ensuring that the IMF does not want the austerity for Tunisia, Gerry Rice, Director of the communications department of the institution of Breton Woods, has specified that “the economic reforms are the key to achieving this objective. ”
” And reverse these reforms is not an option,” he said. In this perspective, the Finance Act 2018 committed by the Government of Youssef Chahed has aims to reduce the deficit of the GDP of 6 per cent in 2017 to 4.9% in 2018 with a growth forecast of 3 per cent and a series of tax increases.
The establishment of a social contribution of solidarity on the benefits and the increase of 1 per cent of the VAT as well as the surtax of luxury products would bail out the coffers of the State and to reduce the commercial deficit which weighs on the foreign currency reserves. Among the shipyards to come for the executive: the problem of social funds, the reform of the Public Service and the grants in the field of energy.
To spend two to four annual reviews
Noting the economic vulnerability of Tunisia, the IMF has approved, at the request of the Tunisia, a new frequency of disbursements. Four annual reviews, instead of two, will increase the number of disbursements for the same remaining amount of the credit to pay.
“The advantage of this new scheme is that the IMF will have the possibility of having the pulse of the Tunisian economy in tighter deadlines and to send positive signals to the international community,” says Robert Blotevogel, which specifies that “The priority is to anchor inflationary expectations and to lower the rate of inflation by the end of the year, or even toward the beginning of the year, in order to preserve the purchasing power of the citizen”.