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Tunisia Promises IMF to Cancel Consumer Products Support | ASHARQ AL-AWSAT English Archive 2005 -2017
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Christine Lagarde, managing director of the International Monetary Fund (IMF)

Tunisia-The Tunisian authorities announced that they are reconsidering the whole consuming products prices’ support system in order to economize the support and direct it to the deserving sectors. In this step, authorities are abiding by one of their obligations towards the International Monetary Fund (IMF).

The consuming products prices’ support system in Tunisia is one of the major reasons behind the budget deficit in Tunisia. Prices’ support mounted from TND950 million in 2010 to TND6 million in meantime, an increase of 530% in six years.

Tunisia vowed to reconsider the system gradually, to not affect the purchasing power of the Tunisians and to avoid a popular reaction similar to what had happened in previous times in the aftermath of raising prices’ support on bread.

Tunisian Minister of Commerce Mohsen Hassan said during convening with a delegate from the IMF that reconsidering the support system in Tunisia is based on a development pattern that relies on investing in high added value sectors of technological content as well.

Moreover, Minister of Commerce affirmed that the economy policy adopted by the country stands on open-door economy, liberated commercial exchanges and effective integration in the world economy.

In the same context, Tunisian Minister of Industry Zakaria Hamad announced endorsing a gradual raise of the support directed towards productive sectors. This procedure will cover the electricity and gas fields for a period of 3-6 months.