Restructuring the foreign debt will not be able to alleviate Tunisia's debt burden, as a large part of its debt is contracted with multilateral creditors who do not renegotiate debts, according to a report recently published by the Malcolm H. Kerr Carnegie Middle East Center. The foreign public debt represents only a small part of the total public debt, since a large part of this public debt is domestic, the report reveals. The center considers that the programmes of the International Monetary Fund (IMF) remain necessary, adding that a programme has already been started in Egypt. To address these weaknesses, the center advocates the development of «credible» national strategies that go beyond austerity provisions and spending cuts. The Tunisian authorities refused the conditions set by the IMF to provide financial support.

Source: The North Africa Journal September 15, 2023 22:55 UTC