IMF ends Malawi visit without agreement on new lending

The International Monetary Fund said it has completed a staff visit to Malawi, where it held constructive talks with officials about the country’s economy and policy priorities, but no agreement was reached on new lending.

“Discussions will continue on the package of policies and reforms that could be supported under an Extended Credit Facility (ECF) arrangement,” the Fund said in a statement, News.Az reports, citing CNBC Africa.

An IMF staff mission visited Malawi from June 9 to 18 for talks on a new arrangement aimed at helping the country recover from a severe economic crisis characterised by double-digit inflation and crippling foreign-currency shortages.

The discussions were expected to focus on fiscal discipline, debt sustainability and foreign exchange management, among other things.

Malawi’s last IMF programme lapsed in May last year because it 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.

Finance Minister Joseph Mwanamvekha said in February that public debt had reached unsustainable levels above 90% of gross domestic product.

News.Az 

By Ulviyya Salmanli