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Talks on the IMF 48-month arrangement have been in limbo after Saied rejected terms including cutting subsidies and reducing the public wage bill, saying the "diktats" laid down by the international lender were unacceptable.

The World Bank recently cut its Tunisian economic growth forecast to 1.2% from 2.3% for 2023 citing "very uncertain prospects" over debt financing and difficult conditions following a three-year drought that has pushed the government to raise tap water prices and threatened food security.

"rising reserves and marginal fiscal consolidation have granted Tunisia some additional runway" thanks to a pickup in tourism

Tunisia also received $500 million of fresh funding from Saudi Arabia in July. A $1 billion European Union pledge of support is, however, conditional on Tunisia receiving an IMF programme.

has to pay back a 500 million euro bond maturing in October and an 850 million euro note due in February

Tunisia can nevertheless count on support from some other nations under pressure thanks to its geopolitical and geographic importance, according to analysts.Italian Prime Minister Giorgia Meloni maintains a close relationship with Tunisia. Record numbers of migrants setting off from the country have landed on Italy's far southern island of Lampedusa."Meloni is a staunch supporter of Tunisia because of the migration issue and that gives them more space to delay things,"

Europe’s neighbors are set to endure even more hardship when it comes to trade imbalances as their exports are due to collapse. They will be among the most affected from the ongoing fall in consumer demand in Europe given their heavy reliance on the continental market. The European Union’s share of total exports stands at some 65 percent for Morocco, 50 percent for Turkey, and 43 percent for Ukraine.

a perfect storm on Europe’s borders. The combination of recessionary economics, balance of payments difficulties, and surging unemployment has created a formidable challenge that will jeopardize domestic social contracts

The ensuing political and economic instabilities would not only create the conditions for the rise of radicalization in these afflicted societies but also trigger new cross-border movements and refugee flows across the Mediterranean.

In the absence of a global consensus, EU governments should consider shifting their IMF-held SDRs to financially strained neighboring countries. That would amount to a financial stimulus of about $95 billion with no fiscal impact on EU and national budgets.

the European Central Bank (ECB) should be more actively involved in establishing swap arrangements with the central banks of partner countries. Under such a scheme, beneficiary countries would obtain euros from the ECB against a collateral in their own currency. These arrangements would provide beneficiary countries with foreign exchange liquidity and replenish their reserves

the UK’s established media has spent the past week fixated on the employment terms of a BBC sports commentator than scrutinising a law that stands to make the lives of tens of thousands of people immeasurably worse.

To date, none of these stories are troubling Tunisia’s mainstream media, which appears more focused on defending Tunisia’s national image and parroting the President’s attack lines than delivering facts to a public growing increasingly hostile to the unwarranted international condemnation it feels itself subject to.

many acknowledge their fresh of support for the President since his crackdown.  Asked about the 21,000 or so black migrants residing in Tunisia, no one here is racist, they say – they simply want to distinguish between those who are here legally and illegally. It sounds reasonable enough. In fact, it could probably pass for small talk at a Conservative Party fundraiser. However, at least in Tunisia, that reasonableness fades when pressed. “They’re selling cocaine, they’re selling their wives and their girlfriends to each other,” Bassem, a fruit and vegetable wholesaler, told me. “They’re even buying boats and taking still more migrants to Europe.” In this part of Ariana, every Tunisian has a lurid tale, always experienced at one remove, which they reel off as ‘proof’ of the criminality of the country’s black migrant population.

Just as the UK media is yet to truly reckon with the financial impact of Brexit on the country’s poorest, so the Tunisian media is unwilling to fully address the consequences of the suspension of the World Bank partnership and the increasing uncertainty surrounding a sorely needed IMF bail-out. 

In 2018, Tunisia signed an agreement to join the "Belt and Road" initiative, which was established by China in 2013. Bin Mabrouk went on to say: "After Algeria announced that it will join the group, we will also announce our intention to join BRICS." Alegria had earlier announced plans to join the BRICS group next year.

As Tunisia’s presidential election approaches later this year, negotiations over the IMF’s bailout package remain at an impasse due to Saied’s reluctance to curb subsidies or reduce public sector wages. He has criticized the institution’s recommended reforms as “foreign diktats” and fired his finance minister, a key proponent of the proposed reforms.“Political pressures can lead to expansionary monetary policies during election periods, which is the case for Tunisia,”