IMF reserves concrete commitment to give Malawi ECF

LILONGWE-(MaraviPost)-The International Monetary Fund (IMF) has reserved making any concrete commitment to giving Malawi Extended Credit Facility (ECF).

This follows a conclusion day visit of IMF First Deputy Managing Director Gita Gopinath to Malawi.

Gopinath met President Lazarus Chakwera, Finance Minister Sosten Gwengwe, and Reserve Bank of Malawi (RBM) Governor Wilson Banda at Kamuzu Palace in the capital Lilongwe on Tuesday, September 5, 2023.

At the end of the meeting, no IMF concrete decision was made on Malawi’s ECF instead Gopinath advised Chakwera’s Tonse Alliance administration to “restore macroeconomic stability, which will set the stage for stronger durable growth and poverty reduction. Macroeconomic adjustment and reforms are gaining traction and it would be important to maintain the momentum in the period ahead”.

“I want to thank President Lazarus Chakwera, as well as the Minister of Finance and Economic Affairs, Mr. Sosten Gwengwe, and the Governor of the Reserve Bank, Dr. Wilson Banda for the productive exchange of views and warm hospitality.

“We discussed the economic and developmental prospects for Malawi. I commended the authorities’ efforts under the Staff-Monitored Program with Executive Board Involvement (PMB) to restore macroeconomic stability, which will set the stage for stronger durable growth and poverty reduction. Macroeconomic adjustment and reforms are gaining traction and it would be important to maintain the momentum in the period ahead”, reads IMF’s Gopinath statement.

She added, “We also discussed the policies that would be necessary to solidify the country’s hard-won gains. Securing a debt treatment would be vital for macroeconomic stability and ensure that additional financing could be used to address Malawi’s pressing developmental challenges. Moreover, strengthening fiscal discipline and addressing weaknesses in governance remains essential.

“The close engagement between Malawi’s economic team and IMF staff in the context of the second review of the PMB is welcome, as is the authorities’ request for an arrangement under the Extended Credit Facility. IMF staff and management will continue to offer their strong support to the authorities’ efforts to stabilize the economy.”

Lloyd M’bwana

I’m a Lilongwe University of Agriculture and Natural Resource (LUANAR)’s Environmental Science graduate (Malawi) and UK’s ICM Journalism and Media studies scholar. Also University of Malawi (UNIMA) Library Science Scholar. I have been The Malawi Country Manager and duty editor for the Maravi Post since 2019. My duty editor’s job is to ensure that the news is covered properly, that it is delivered on time, and that it is created to the standards set out in the editorial guidelines of the Maravi Post.