The International Monetary Fund (IMF) said a staff visit to Malawi had made progress on a set of macroeconomic policies that could be supported by a new lending programme.
“The authorities have been implementing strong reforms to tighten fiscal discipline, reduce the public debt burden, and improve how markets function. These reforms provide a good foundation for an IMF-supported programme,” the Fund said
“Discussions will continue to finalise the policy package that could underpin an Extended Credit Facility-supported programme,” it added
Malawi’s last IMF programme, worth $175 million, ended 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 is one of the world’s poorest countries and its economic difficulties include a high debt burden and declining donor funding
President Peter Mutharika, who took office a year ago, has said that securing a new IMF deal is crucial to stabilise the economy, as fuel and foreign exchange shortages have persisted
—Reuters—
