May 30, 2023

The Political Chronicle

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Tunisia, heavily in debt, is seeking its Arab partners to fill its coffers

The treasury in Tunisia is empty and ties with the IMF were severed after President Saeed’s coup last July.

For Fatal Kapoop, an expert on financial sovereignty issues, this option is not possible anyway. The IMF will stress the most drastic austerity measures that could harm the most vulnerable people, such as cuts in food and energy subsidies and cuts in the wage bill. ”

Faced with this stalemate, Tunisia is now turning to what it calls its “Arab brothers.” Understand: Emirates and Saudi Arabia. The two countries could issue $ 3 to $ 5 billion, according to Fadhel Kaboub, on subsidies, loans and fuel sales. “It is natural for this kind of aid to be a foreign policy tool in the service of their interests. When a country lacks food and energy sovereignty, its monetary and economic sovereignty will be very low, so its political sovereignty will be severely affected,” Fadel Kaboub argues.

The talks, which took place when the Moody’s agency downgraded Tunisia’s sovereign rating last week, will further complicate access to foreign funding for the country.

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