Tunisia says World bank will lend it $400 million for social reforms

The World Bank will lend Tunisia about $400 million to finance social reforms, the Tunisian government said on Tuesday, as it started talks with the International Monetary Fund on economic reforms.

The North African country, which is suffering from a financial crisis, is seeking to obtain a rescue package from the IMF in exchange for economic reforms, including spending cuts.

After a meeting with Prime Minister Najla Bouden, the World Bank Vice President Ferid Belhaj said on Tuesday the bank was ready to provide the necessary funds for Tunisia to implement economic reforms.

The IMF and foreign donors have said the outlined economic reforms, including to energy subsidies, would need broad support, including from the powerful UGTT union for a deal to be secured.

Finance Minister Sihem Boughdiri said earlier this month that Tunisia hoped to seal an agreement with the IMF in April. 

Tunisian president Kais Saied - who was accused by critics of staging a coup last year - said on Tuesday he will launch a committee to audit all the loans and grants that Tunisia has obtained in the past years. 

"Where did the money go? The people's money should go back to the people," Saied said during a meeting with Belhaj.

Saied added that he knew of a grant worth $500 million that was transferred to accounts abroad and did not enter Tunisia at all.