Finance Ministry Says Tunisia Will Sign IMF Agreement by June

By Tristan Dreisbach | Apr 10 2013 Share on Linkedin Share on Facebook Share on Twitter Share on Google Share on pinterest Print

Tags: Development ,Elyes Fakhfakh ,hizb ettahrir ,imf ,Ridha Bel Haj ,
IMF Tunisia

IMF logo. Image courtesy Al-Arabiya.

The Tunisian government is in agreement with the IMF on the terms of an emergency loan package, Ministry of Finance spokesperson Oumaya Saharaoui told Tunisia Live, and will sign an agreement in May or June after final arrangements are made. An IMF delegation is currently in Tunis to discuss the agreement.

The loan accord has been controversial, with critics arguing that the negotiation process has not been sufficiently transparent and that the deal would improperly cede authority over Tunisian economic policy to outside actors. The Finance Ministry rejected this criticism.

This is on the level of the country, and since when do we ask people about things such as loans and major financial issues?, asked Saharaoui, disputing the notion that the procedures were undemocratic.

The deal would provide for a stand-by loan worth $1.78 billion, but Tunisian officials have asserted that this money would only be used in an emergency and that they do not anticipate drawing on these funds.

The agreement is a precautionary measure to help support the country during the transition period and, if need be, cope with exogenous shocks that could come from the global environment, according to an IMF statement released in February.

Finance Minister Elyes Fakhfakh told Bloomberg that it is important to gain a guarantee from the IMF to shield Tunisia against financial instability within the country and the economic crisis in Europe.

Tunisia would be required to commit to a set of structural economic reforms to secure the loan, but Fakhfakh said that reforms have already been underway in Tunisia, with the IMF requirements are very small in comparison.

Lobma Jribi, member of the National Constituent Assembly (NCA) subcommittee on finance and member of the Ettakatol party, said the NCA will approve the agreement after it is signed by the government.

Hizb Ettahrir party has been a vocal critic of the IMF agreement, protesting the arrival of the IMF delegation on April 8th. Party leader Ridha Bel Haj told Tunisia Live he opposes the loan because it advances a political agenda aimed at controlling Tunisian affairs and would force future generations of Tunisians to pay back the debt.

Bel Haj said that Tunisia, as an Arab and Islamic country, has a duty to follow sharia (Islamic law) in its financial decisions. He asserted that an IMF agreement would be incompatible with Islamic principles, and that it is also not the correct decision for a sovereign state.

It's humiliating to knock doors to get money, said Ben Haj, who suggested that agreements with neighbors such as Libya may be a viable option.

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    I think the Tunisian government should ditch the IMF(with all of its conditionalities) and strike up a loan deal with Libya. The Libyans need the labor force and could supply the capital to keep the Tunisian economy afloat.

  1. Mr. Bel Haj Tunisia is neither Arab nor Islamic country, Tunisia is a country of Berbers, Sharia law belongs to those backward countries like Saudi Arabia, Qatar and so on. those countries are lucky to have oil, when they did not have oil they were the most backward countries in the world, the oil monies has not changed their “rotten” backward mentality. Mr Bel Haj wake up and lets go forward instead of backward.

  2. @benamor
    you and your Berbers are a bunch of losers.
    I”d rather think of myself and most of my Tunisian peers as Arabs and Muslims…at least I’d be belonging to a CIVILIZATION….even if it is no more at its top…it is still a CIVILIZATION.
    As for the Berbers, they are nothing, were nothing and will be nothing….a detail in the history of humankind. Just like your little self.