By Francoise Kadri:Western nations fear an economic collapse in Tunisia could trigger even greater migrant flows to Europe and have offered financial assistance. In March, US Secretary of State Antony Blinken warned Tunisia urgently needs to reach an IMF deal because its economy “risks falling off the deep end”. Under the IMF deal Tunisia would also have to restructure 100 state-owned firms that hold monopolies over many parts of the economy and are often heavily indebted. The state’s fuel subsidies bill soared 370 percent on-year in the first half of 2022, official figures show. “There is nothing much that can replace the gradual increase in pump prices foreseen by the IMF programme,” a source close to the negotiations said.

Source: The North Africa Journal July 26, 2023 17:46 UTC