Public Management

Tunisia inches closer to IMF deal with wage increase agreement

Tunisia inches closer to IMF deal with wage increase agreement
Monday, 19 September 2022 15:44

On Thursday, September 15, the Tunisian government signed an agreement with trade unionists to increase civil servants’ pay. It is now focused on negotiating a reform program with the IMF. 

The Tunisian government expects an agreement with the International Monetary Fund (IMF) by the end of October. According to Government Spokesman Nasreddine Nsibi (photo), Tunisia's file will be submitted to the Fund's Executive Board next month.

The announcement comes a few days after the government signed an agreement with Tunisian General Labour Union (UGTT), which was requesting social measures. The agreement provides for a 5% increase in public sector wages in a context marked by an inflation-fueled economic crisis.  

In addition to easing social tensions, the agreement between the government and the trade unionists makes IMF support more likely as the Bretton Woods institution asked the government to reach an agreement with workers before considering a possible support program.  

Speaking to Reuters, Maroan Abassi, governor of the Tunisian central bank explained that the amount of the economic program is still being negotiated but, it could be between $2 and 4 billion. “we hope to reach a staff level deal in the coming weeks,” he said.

In July 2022, U.S. bank Morgan Stanley warned that Tunisia was the African country most at risk of defaulting on its debt due notably to a “budget deficit of almost 10%, one of the highest public sector wage bills in the world.”  After the U.S. bank, credit rating agency Fitch also downgraded the country's sovereign rating from "B-" to "CCC", estimating that a public deficit of 8.5 percent of GDP this year would push its debt-to-GDP ratio to 84 percent.

At the end of July, the IMF welcomed the productive discussions it had with the government.

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Fily Sissoko will oversee a $8.5 billion World Bank portfolio spanning Mozambique, Madagascar, Mauritius, Comoros, and Seychelles.• His mission...
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
Most Read
01

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
02

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
03

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.