June 18, 2021
General News

ANALYSIS-Tunisian political chaos threatens IMF deal

* Power struggle between president, PM, parliament

* Pandemic sends national debt to 91% of GDP

* Central bank warns of ‘Venezuelan scenario’

TUNIS, May 27 (Reuters) – Tunisian politicians and officials warn of an economic collapse if the government cannot agree a new International Monetary Fund (IMF) loan this summer, but political paralysis could scotch that effort.

Tunisians are used to last-ditch financial talks that pit the demands of foreign lenders against public opinion, but this time a power struggle between the president, prime minister and parliament has added new complications.

“The political situation is blocked in Tunisia,” said former prime minister Youssef Chahed. In an interview with Reuters, he said “there is no serious debate” in the political class about fixing the economy.

After the COVID-19 pandemic cut output by 8.8% last…

Read full article here: www.reuters.com