Tunisia, IMF reach agreement on $1.9 billion loan

By Aisha Yahyawi

TUNIS, Tunisia (AA) – Tunisia has struck a preliminary agreement with the International Monetary Fund (IMF) for a $1.9 billion loan to shore up its economy.

"IMF staff and the Tunisian authorities have reached a staff-level agreement to support Tunisia's economic policies with a 48-month arrangement," the IMF said in a statement.

The statement, however, said a final agreement for the loan "is subject to the approval of the IMF's Executive Board, which is scheduled to discuss Tunisia's program request in December."

The IMF said the loan would restore "macroeconomic stability and strengthen social safety nets" for Tunisians.

"The worsening global environment and high international commodity prices are weighing heavily on the Tunisian economy," it added.

Tunisia started talks with IMF teams in July in an effort to agree on a package of reform and to support Tunisia's economy.

In September, inflation in the North African country reached 9.1%, the highest in 30 years.

Tunisia has been in the throes of a deep political crisis that aggravated the country's economic conditions since last year, when President Kais Saied ousted the government and dissolved parliament.

While Saied insists that his measures were meant to "save" the country, critics have accused him of orchestrating a coup.

Writing by Ahmed Asmar