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Tunisia Asks IMF for Finance Program

International Monetary Fund logo is seen outside the headquarters building during the IMF/World Bank spring meeting in Washington, US. Reuters file photo
International Monetary Fund logo is seen outside the headquarters building during the IMF/World Bank spring meeting in Washington, US. Reuters file photo
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Tunisia Asks IMF for Finance Program

International Monetary Fund logo is seen outside the headquarters building during the IMF/World Bank spring meeting in Washington, US. Reuters file photo
International Monetary Fund logo is seen outside the headquarters building during the IMF/World Bank spring meeting in Washington, US. Reuters file photo

Tunisia has asked the International Monetary Fund for a new financing program, the IMF said on Sunday, as the country prepared to begin talks with the global lender.

“The Tunisian authorities have officially requested a new program,” an IMF spokeswoman said. “The IMF has been and will remain Tunisia’s reliable partner during these challenging times.”

The IMF reiterated the need for any reform moves to be the result of an agreement between Tunisia’s main stakeholders as well as the country’s international partners, according to the letter to Prime Minister Hichem Mechichi shared Sunday with Bloomberg by government adviser Moufdi Al-Mseddi.

Reforms should also “tackle decisively” the issue of public finances and debt and a restructuring of subsidies, public firms and the public wage bill, the IMF said.

Tunisian officials said Mechichi will travel to Washington on May 3 to hold talks with IMF officials.

Tunisia reported a fiscal deficit of 11.5% of economic output in 2020, the biggest gap in nearly four decades as the coronavirus pandemic took its toll.

The country last year secured nearly $750 million through an emergency assistance loan from the IMF to help counter the economic impact of the coronavirus outbreak.

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IMF Sees 'Some Progress' on Lebanon Reforms, But Says External Support Needed

People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025. EPA/WAEL HAMZEH
People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025. EPA/WAEL HAMZEH
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IMF Sees 'Some Progress' on Lebanon Reforms, But Says External Support Needed

People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025. EPA/WAEL HAMZEH
People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025. EPA/WAEL HAMZEH

Lebanon has made progress on reforms needed to revive its economy but still has key steps to take and will need external funding on concessional terms, the International Monetary Fund (IMF) said on Thursday after a week of meetings in Beirut.

Lebanon's economy went into a tailspin in late 2019, prompted by decades of profligate spending by the country's ruling elite.

Reforms required to access IMF funding were repeatedly derailed by political and private interests, according to Reuters.

Lebanon's President Joseph Aoun and Prime Minister Nawaf Salam, both of whom took office in early 2025, pledged to prioritize reforms and secure an IMF financing agreement - but the country now faces additional needs with the widespread destruction and displacement caused by Israel's military campaign last year.

“The authorities have made some progress recently, including the amendment of the Bank Secrecy Law and submission of a new bank resolution law to Parliament,” the IMF's Lebanon mission chief Ramirez Rigo said in a written statement.

Rigo added that his mission held “productive discussions” with Lebanese officials, including on restoring the viability of the banking sector, fiscal and debt sustainability and enhancing anti-money laundering and terrorism financing measures.

He said Lebanon's medium-term fiscal framework should support the restructuring of Eurobond debts, which Lebanon defaulted on in 2020, leading to a sovereign default on its $31 billion of outstanding international bonds.

“Given Lebanon's substantial reconstruction needs, limited fiscal space and lack of capacity to borrow, the country will require significant support from external partners on highly concessional terms,” the IMF statement said.

The World Bank estimated Lebanon's recovery and reconstruction needs following Israel's military campaign at $11 billion. But the US has said it opposes any reconstruction funds to Lebanon until Hezbollah - the Iran-backed Lebanese armed group that fought Israel last year - is disarmed.