Tunisian authorities have made ‘very good progress’ on the steps needed to approach the IMF’s board for approval of a loan program, according to the fund’s chief. The comments signal that a breakthrough could be near after a deadlock lasting months. Among the toughest issues yet to be resolved is the fate of a bloated public sector and over 100 state-owned enterprises where the UGTT holds powerful sway. An IMF deal would also likely involve cutting spending to get the public sector wage bill under control and easing down the subsidies in place; changes will likely fuel inflation and increase social unrest.