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The International Monetary Fund has postponed its board meeting on a loan programme for Tunisia that was scheduled for 19 December to give the authorities more time to finalize it, a government official told Reuters on Wednesday.

He added that Tunisia intends to re-present the file of the reform programme when IMF meetings resume in January 2023.

Tunisia had reportedly reached a staff-level agreement with the IMF for a $1.9 billion package in exchange for unpopular reforms, including cutting public services such as food and energy subsidies.

Tunisia is in dire need of international financial help as it grapples with an economic crisis that has contributed to a fuel and food crisis in the country, and has raised fears that Tunis may default on its debt.

Tunisia’s economy had already suffered for years as political uncertainty and militant attacks hit its crucial tourism sector even before the COVID-19 pandemic and global scarcity stemming from the Ukraine war.

Next year's budget is widely expected to include austerity measures and spending cuts, according to sources, and tax hikes for professions such as lawyers and accountants.