TUNIS: The International Monetary Funds says Tunisia is committed to “decisive action” to reform its economy before the IMF reviews the payment of its next loan tranche.
Last year, the Washington-based IMF agreed a four-year loan program worth about $2.8 billion with Tunisia, but tied to economic reforms.
Tunisia has been hit by a sharp fall in tourism revenues and fresh foreign investment because of militant attacks in 2015 and overall turmoil since the 2010 overthrow of long-time ruler Zine El Abidine Ben Ali.
“Building on their ambitious budget law for 2018, the Tunisian authorities have expressed their commitment to take decisive action,” the IMF said in a statement late on Wednesday after a visit of a delegation to Tunis.
“The main challenge for the months ahead is to make-up for the significant delays in lifting long-standing obstacles to growth and addressing large fiscal and external deficits,” it said.
Economic Reforms Minister Taoufik Rajhi told Reuters the staff-level deal reached with the IMF delegation opened the door to the third loan installment.
“It confirms the reform paths followed by the government,” he said.
The IMF has been pressing Tunisia to reduce the public wage bill — at almost 15 percent of GDP one of the world’s highest — and energy subsidies, which it said were “disproportionately” benefiting the rich.
Both cuts would be targetted at reducing the deficit.
In the 2018 budget, Tunisia plans cut its budget deficit to 4.9 percent of gross domestic product in 2018, down from about 6 percent expected in 2017, officials have said.
The IMF said it supported efforts by Tunisia to get removed from a blacklist of 17 jurisdictions imposed by the European Union this month on what the bloc deemed to be tax havens.
The decision shocked the North African country with analysts warning it will undermine badly needed investment and efforts to secure $3 billion in foreign loans to fund its budget next year.
In April, the IMF agreed to release a delayed $320 million tranche of Tunisia loans.
Tunisia wants to reduce the public workforce by 20,000 from 800,000 via voluntary redundancies but will go ahead with a wage increase for public servants in 2018 as agreed with powerful labor unions.
Tunisia ready for “decisive action” on economy, IMF says
Tunisia ready for “decisive action” on economy, IMF says
Iraq announces complete withdrawal of US-led coalition from federal territory
- The vast majority of coalition forces had withdrawn from Iraqi bases under a 2024 deal between Baghdad and Washington
- US and allied troops had been deployed to Iraq and Syria since 2014 to fight the Daesh group
BAGHDAD: Iraq said on Sunday US-led coalition forces had finished withdrawing from bases within the country’s federal territory, which excludes the autonomous northern Kurdistan region.
“We announce today... the completion of the evacuation of all military bases and leadership headquarters in the official federal areas of Iraq of advisers” of the US-led coalition, the military committee tasked with overseeing the end of the coalition’s mission said.
With the withdrawal, “these sites come under the full control of Iraqi security forces,” it said in the statement, adding that they would transition to “the stage of bilateral security relations with the United States.”
The vast majority of coalition forces had withdrawn from Iraqi bases under a 2024 deal between Baghdad and Washington outlining the end of the mission in Iraq by the end of 2025 and by September 2026 in the Kurdistan region.
US and allied troops had been deployed to Iraq and Syria since 2014 to fight the Daesh group, which had seized large swathes of both countries to declare their so-called “caliphate.”
The militant group, also known as “Islamic State,” was territorially defeated in Iraq in 2017 and in Syria in 2019, but continues to operate sleeper cells.
The vast majority of coalition troops withdrew from Iraq over previous stages, with only advisers remaining in the country.
The military committee on Sunday said Iraqi forces were now “fully capable of preventing the reappearance of IS in Iraq and its infiltration across borders.”
“Coordination with the international coalition will continue with regards to completely eliminating IS’s presence in Syria,” it added.
It pointed to “the coalition’s role in Iraq offering cross-border logistical support for operations in Syria, through their presence at an air base in Irbil,” the capital of Iraq’s Kurdistan region.
In December, two US soldiers and a civilian interpreter were killed in Syria in an attack blamed on IS, sparking fears of a resurgence in the country.
The statement added that anti-IS operations would be coordinated with the coalition through the Ain Assad base in Anbar province in western Iraq.
IS attacks in Iraq have massively declined in recent years, but the group maintains a presence in the country’s mountainous areas.
A UN Security Council report in August said: “In Iraq, the group has focused on rebuilding networks along the Syrian border and restoring capacity in the Badia region.”
