Without a loan, the country may default on its foreign debt in 2024 or 2025. As the economy has floundered, the state has turned increasingly to foreign debt to prop it up. It describes the scenarios that would result from either obtaining an IMF loan or from failing to secure one, followed by a foreign debt default. Nevertheless, these views seem to short-sell or overlook a number of considerations that suggest foreign debt default could well spin out of control. In this event, as discussed, the risk of default on Tunisia’s debt will increase significantly.

Source: The North Africa Journal December 22, 2023 13:50 UTC