The International Monetary Fund (IMF) is ready to move quickly on a credit programme for Malawi, the lender said on Monday, but warned it will depend on the country’s willingness to implement economic reforms.
IMF Resident Representative Nelnan Koumtingue said discussions were focused on policies outlined in Malawi’s National Economic Recovery Plan and how the fund could support them with an extended credit facility arrangement.
The comments came after an IMF mission left Malawi on June 18 without a deal.
“The process is evolving,” Koumtingue told Reuters.
Williams Banda, a Spokesperson for Finance Minister Joseph Mwanamvekha, confirmed the talks were ongoing, saying the government and IMF had “agreed on the pathway” but declined to give further details.
The National Economic Recovery Plan, tabled by Mwanamvekha earlier this month, outlines a five-year roadmap to stabilise Malawi’s economy, addressing debt pressures, fiscal reform, corruption and social protection during the restructuring period.
Malawi’s last IMF programme, worth $175 million, lapsed in May last year because the country did not complete a review within 18 months of its approval, meaning it received only an initial disbursement of $35 million. The Southern African nation’s economic difficulties include a high debt burden and declining donor funding.
–Reuters–
