IMF Responds Positively to Tunisia’s Request for Funding Program

International Monetary Fund (IMF) Managing Director Kristalina Georgieva. (Reuters)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva. (Reuters)
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IMF Responds Positively to Tunisia’s Request for Funding Program

International Monetary Fund (IMF) Managing Director Kristalina Georgieva. (Reuters)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva. (Reuters)

Tunisian authorities received a letter from International Monetary Fund (IMF) Managing Director Kristalina Georgieva that included the acknowledgment that Tunis will remain a reliable partner.

Tunisian government sources said that the IMF welcomed the reform package, which was discussed between the government and labor union.

They indicated that the program that the IMF will discuss must guarantee the stability of the Tunisian economy in the near future coupled with sustainable growth.

According to the correspondence, the fund stressed it is fundamental to tackle the problem of sustainability of public finances and debt, implementing ambitious reforms of public companies, salaries of the public administration and energy subsidies. It called for addressing the entrepreneurial climate, stability of the financial sector and financial inclusion, social protection and governance.

Tunisian economist, Mohsen Hassan believes the IMF would react positively to the government's demand to finance its economic program, which will not be affected by the political and economic crisis.

He stressed the possibility of agreeing on a new economic program that would enable the mobilization of the necessary financial resources to protect the country from bankruptcy and chaos.

On Sunday, the IMF stated that Tunisia formally requested a new financing program, lauding the efforts of the government’s talks with the Tunisian General Labor Union (UGTT) on subsidies, taxes and state institutions.

Georgieva said she would assign a delegation to conduct technical talks as soon as she receives more information about the reform program.

Tunisia’s economic program addresses six main issues: liberalization of the economy and an improvement of the entrepreneurial climate, improvement of the fiscal system, reform of the public function, the transformation of public companies and a program of investments to revive the economy.

Tunisia reported a budget deficit of TD18.5 billion, according to preliminary estimates, however, a number of economists believe it will increase to 21.5 billion this year.



Report: US Embassy in Iraq Preparing for Ordered Evacuation Due to ‘Heightened Security Risks’

The US embassy in Baghdad, Iraq. (Reuters file)
The US embassy in Baghdad, Iraq. (Reuters file)
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Report: US Embassy in Iraq Preparing for Ordered Evacuation Due to ‘Heightened Security Risks’

The US embassy in Baghdad, Iraq. (Reuters file)
The US embassy in Baghdad, Iraq. (Reuters file)

The US embassy in Iraq is preparing for an ordered evacuation due to heightened security risks in the region, an Iraqi security official and a US source said on Wednesday.

Iran's Minister of Defense Aziz Nasirzadeh said earlier in the day that Tehran will strike US bases in the region if nuclear talks and conflict arise with Washington.

The State Department did not immediately respond to a request for comment.

"The State Department is set to have an ordered departure for (the) US embassy in Baghdad. The intent is to do it through commercial means, but the US military is standing by if help is requested," another US official said.

US President Donald Trump said he was less confident that Iran will agree to stop uranium enrichment in a nuclear deal with Washington, according to an interview released on Wednesday.

Another US official said that there was no change in operations at Al Udeid Air Base in Qatar, the largest US military base in the Middle East and that no evacuation order had been issued for employees or families linked to the US Embassy in Qatar, which was operating as usual.

Trump has repeatedly threatened Iran with bombing if it does not reach a new nuclear deal.