VenturesNow

Italian Foreign minister, Antonio Tajani, wants IMF, US to unblock aid fund to Tunisia. Here’s why

Published

2 years ago

March 19, 2023

European country, Italy is worried that International Monetary Fund’s block on a $1.9 billion loan to Tunisia might lead to a new wave of migrants towards Europe.

Italian Foreign Minister, Antonio Tajani remarked on Sunday as the IMF, the United States, and other international donors stopped bailout talks demanding far-reaching reforms from President Kais Saied to free up the cash.

Tajani told journalists that he has spoken to IMF Managing Director Kristalina Georgieva and urged her to show flexibility to stave off possible financial collapse.

“I reiterated the need for the Fund to intervene quickly in favour of Tunisian stabilisation and growth with economic and financial support.

“The stability and prosperity of Tunisia, with respect for fundamental rights and freedoms, are crucial for the stability of the entire Mediterranean region,” Tajani said.

He had discussed the problem with US Secretary of State Antony Blinken prior to an upcoming meeting of EU foreign ministers.

“Uncontrolled irregular migration can only be reduced by improving the conditions of security and economic stability,” Tajani said, adding that Italy was looking to boost training opportunities for Tunisians as an alternative to migration.

In recent years, refugees and migrants attempting to reach Europe via the Mediterranean Sea lost their lives at an alarming rate. According to the EU statistics agency Eurostat, an analysis done in September 2022 which revealed that in September alone, France received around 15,000 asylum applications, Germany almost 21,000, Austria around 15,700, and Spain more than 11,000, compared to only 8,500 for Italy.

As of 2023, Italy has taken in 20,046 boat migrants, a record number, beating the all-time high set in 2016, when 181,436 migrants reached land in a flotilla of flimsy boats.

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VenturesNow

IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

1 day ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

1 day ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.