Tunisia cuts ties with IMF in sovereignty dispute

Tunisia has severed communication with the International Monetary Fund (IMF), with President Kais Saied accusing the institution of infringing on the country’s economic sovereignty, regional media reports. The IMF had been negotiating a loan program to stabilize Tunisia’s struggling economy, but Saied opposed its conditions, including subsidy cuts and tax reforms.

The rupture comes amid severe economic challenges, including high inflation, unemployment, and rising public debt. The IMF has played a key role in Tunisia’s financial stability since the 2011 revolution, offering loans and policy guidance. However, the government argues that IMF-mandated austerity measures have worsened economic hardships.

With this breakdown in relations, Tunisia now faces the challenge of securing alternative financial support to avoid deeper economic turmoil. Observers warn that without external assistance or structural reforms, the country’s economic crisis could further deteriorate, straining public services and social stability.