Saied rejected “foreign diktats” from the International Monetary Fund (IMF), mired with heavy debt burdens.
Saied told reporters in the coastal city of Monastir that “the IMF, foreign diktats will lead to more poverty which is unacceptable,”
Saied’s administration reached a consensus sometime in mid-October for about a $2 billion package from the IMF, but the deal has not been approved by the lender’s board, which was a key step to cracking support from other international lenders.
IMF moved for the removal of state subsidies on basic goods, particularly fuel subsidies by Tunisia government.
Saied said, “It’s true that some people who don’t need subsidies are benefitting from them, but we can find other ways to make sure they get to those who deserve them,”
The coronavirus outbreak and the effects of Russia’s invasion of Ukraine have made Tunisians’ years-long increasing economic suffering worse.
IMF approval of a rescue plan was initially scheduled for December 19, but it was postponed requiring a Tunisian budget, which has subsequently passed, and a bill to prevent banks from charging exorbitant interest rates.
Last month, after Saied stirred racial charges with offensive remarks about migrants from sub-Saharan Africa, the World Bank, the IMF’s sister lender, effectively halted fresh loans to Tunisia.
That meant that the IMF negotiations, which were partially dependent on funds from the Bank, may potentially be delayed, and the IMF would be under pressure not to sanction a bailout, according to a World Bank official.
When approached with the question of what alternatives are prevalent to the deal, Saied Tunisians should “work on our own”.
He added that “Social peace is not a game,”
The IMF has also asked for legislation to reorganize more than 100 state-owned companies, many of which are deeply indebted and have monopolies over large portions of the economy.
Cuts to public assistance for necessities have a terrible track record.
The price of bread, semolina, and pasta skyrocketed after Tunisian authorities ended the country’s cereal subsidy program in December 1983, sparking riots that left dozens of people dead.
Since removing the government in July 2021, Saied has consolidated his power. He then disbanded the legislature and forced through a new constitution to replace the one that had been adopted in 2014 after the country’s Arab Spring revolution.
Saied, 65 years old, who was elected in 2019 for a five-year term. Was asked if he is considering running for the seat of the president again next year, he replies by saying is “too early to say”.
“I do not feel that I am in competition with anyone, I feel that I have a responsibility to assume, and I will not give it up,” he said.
