Goodall upbeat Malawi to get IMF credit February 2016, donors to open aid taps

Finance minister Goodall Gondwe has cast a shadow of hope that the government will be on track with the International Monetary Fund (IMF) extended credit facility in February 2016, a move that will trigger the coming back of Malawi’s traditional donors.

Goodall Gondwe and RBM governor Chuka: No borrowing

Goodall Gondwe and RBM governor Chuka: No borrowing

Prof Ben Kalua:

Prof Ben Kalua: I havedoubts

Speaking during a round table discussion on Monday in the capital Lilongwe organised by the Reserve Bank of Malawi to commemorate 50 years of its existence, Gondwe said the government has cut down on borrowing drastically to tame inflation, one of the conditions imposed by the global lender.

“We are spending less, therefore we are borrowing less. The figures show we are doing extremely well. Infact we have not borrowed in November,” said Gondwe trying to give hope to Malawians who are frustrated and live in despair in the current economic turmoil that has pushed the cost of living drastically up.

Inflation is hovering at around 25 per cent, the highest in the region, which means the cost of food and basic things in Malawi is very expensive compared to other countries in Sadc.

But Gondwe said the IMF team, which is coming next week to see how the government has performed, will recommend that the extended credit facility resumes.

He said the government is making sure that the economic policies are in tandem with monetary policies hence the drastic cutting down on borrowing by the Reserve Bank of Malawi from commercial banks and other entities to tame the inflation.

But Chancellor College professor of economics Ben Kalua expressed strong reservations that the Government will be on track with the IMF extended credit facility.

Kalua said the government has excessively borrowed from financial markets and has even issued bonds, long term borrowing which can take up to two years of repayment period.

“Economic fundamentals show that we are not doing well. I doubt if we will have the IMF extended facility in February,” he said.

He said the excessive borrowing is negatively impacting on the economy because it is more than what the Malawi Revenue Authority can collect.

President Peter Mutharika has flown in ordinary plane on his three nation tour as opposed to the usual chartering of presidential jet, as a means of cutting down on expenses.

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18 thoughts on “Goodall upbeat Malawi to get IMF credit February 2016, donors to open aid taps”

  1. Rahul says:

    How can the minister even bring the words borrowing and doing well in the same speech, this is absurd.

    For sometime now we havent been doing okay, and the fact that our Minister sees Aid as the only solutions to our problems ,this is even the worst problem that we have. MRA Collections, Road Traffic Collections, MERA, Escom and these other government offices, Each month they collect soo much money that if the outlet of these moneys was perfectly planned,
    Malawi shudnt have been the poorest country in this world.

    Effective Plan, Plan, Strategy, Our main plain doesnt hav to b trying everything possible so we can be borrowed, its sooo shameful.

    Running a Government is the biggest business there is and this country has been making too much loses through the years.

    Ohhh, Malawi

  2. Judah says:

    Bodza he said the same in July cheating us that donors will be back by October. unfold the 577 first

  3. Ndata says:

    Professor Kalua what you are saying is too deep for these cats to understand

  4. Mpumulo wa Bata wayandikila says:

    The right is not talking to the left, Mathanyula says one thing his Finance Minister says another, total chaos!!!

  5. chindime says:

    The president said donors are not coming back, so who is right?

  6. Uncle Master says:

    Let us be proud of our country if something positive is being emanating.

  7. Balamanthu says:

    When a government cannot reconcile its Bank accounts for the last three years, has no audited financial statements for the last five years, how can the IMF come and bring aid back.These are basic things which Gondwe and his Accountant General are failing to sort out because government does not have the political will to resolve these issues.We should just brace for hard times ahead.Dont give us false hopes.My house stopped buying bread some one year ago because it has become quite expensive.Kubera mavoti kumabweretsa mabvuto achoncho.

  8. SONG says:

    This is Gondwe I know full of lies to Malawians. Ministry of Finance needs capable like Mathews Chikaonda, Luise Chimango, John Tembo not Gondwe who tells lies every day and killing Malawians.

  9. akuntinji anamuona says:

    No doubt professor kalua. It takes practical side of handling the vehicle not theoretical side of it. Please see beyond books assumption and live reality of Malawi economy.

    For sure we will be riding IMF track.

  10. mtumbuka1 says:

    Who will be paying back the credit Mr gondwe, the already heavily taxed poor Malawians? It’s a pity that you will be doing the borrowing and use the money to buy fancy cars for peter and his friends including yourself but the poor Malawians will be paying back the loans for you. You are very lucky Mr Goodall and your president.

  11. Eugene says:

    Wakhuta Whisky eti Mxiiii

  12. wonyinyilika says:

    zitsiru za anthu inu wina akunena kuti ma donors anatseka makomo othandizaso Malawi n today ur tokin ov rubbish again mbuzi za anthu mxiiiiiiii

  13. chatonda says:

    Why do we have conflicting information between the president and his ministers all the time/ The president said last week the time for donors borrowing is gone and yet Goodall is failing to breathe so that donors can come back and assist the economy? Which is which now? Do we need donors or the president doesn’t want them personally?
    Government should tread carefully on political subsidies such as Malata and Cement and FISP otherwise the economy will continue to tumble or heavy borrowing will continue. There is too much spending by the president and his Vice. Look, both are outside the country sharing our taxes in millions yet patients are eating once a day regardless of the medicine they are taking withut food. God will judge.

  14. DZUWA LINYENGA says:

    Chalaka bakha nkhuku singatoleeeeee???????????????

  15. sam says:

    Goodall we thought 2004-09 you did well but now we know it was Bingu and not you, your economics is for the 1950 and irrelevant now. Since you have been the finance minister the kwacha has never stabalised, you borrowed from PTA bank which was of no benefit as the kwacha is losing value even quicker now then in the JB era, you are maintaing Chuka as a governer who could not stop the cashgate,inflation is out of control. Bingu was right when he did not give you the finance minsitry post again. You have failed and brought more misery to suffering malawians

  16. befall says:

    What’s wrong with this old man? This country has gone to the dogs his boss said December why can’t they speak with one voice

  17. Prince Edward rsa says:

    No donors and no credit extention mbuzi za asogoleri after that you bang tables claiming you are billionares pathakopako

  18. mphatso says:

    Goodall please you are too old, kindly resign for the love of Malawi, first you said IMF is coming in December now you say february then you will say june like this we will reach 2019, do you this we are follish and dont understanand. IMF principles will not work, western countries like UK, USA have borrowed a lot to bring economic growth, here IMF says dont borrow, inflation is there because of the floating Kwacha fix the kwacha and inflation will go.

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