IMF approves US$ 18.1m for Malawi: Impressed with economic outlook

The International Monetary Fund (IMF) has approved $18.1 million (almost MK7. 6billion) for Malawi under its three-year Extended Credit Facility (ECF) support program.

President Mutharika, Finance Ministe and IMF mission at Kamuzu Palce- Pic by Stanley Makuti.

President Mutharika, Finance Minister and IMF mission at Kamuzu Palce- Pic by Stanley Makuti.

The approval of the funds  by the IMF board at a meeting in Washington on Monday means that Malawi so far has a total disbursement under the ECF program to US$ 90.3 million out of the program’s total resources of $156.2 million (about K55 billion).

According to a statement from the Bretton Woods institution the approval esult from the completion of the fifth and sixth review of Malawi’s economic performance by the IMF board under the new ECF program.

In completing the fifth and sixth reviews, the IMF Executive Board also approved the authorities’ request for waivers of non-observance of performance criteria related to the net domestic assets of the Reserve Bank of Malawi (RBM), net domestic borrowing by the government, the ceiling on new non-concessional external debt maturing in more than one year, and the ceiling on non-accumulation of external payments arrears.

The Board also approved a request for an extension of the current ECF arrangement by six months to May 22, 2016 and the rephasing of disbursements associated with the seventh and eighth reviews, the statement said.

“Malawi’s macroeconomic outlook and performance under the IMF-supported program was significantly damaged by a large-scale theft of public funds [cashgate] and by policy lapses in the run- up to elections. The breach of governance resulted in the suspension of budget support from donors, which has led to increased recourse to central bank financing, accumulation of domestic arrears, exchange rate depreciation, and high inflation,” pointed out Mitsuhiro Furusawa, Acting Chair and Deputy Managing Director.

The IMF boss expressed confidence in the Peter Mutharika government that it is committed to rebuilding trust in public institutions and bringing the IMF-supported program back on track, including through maintaining a flexible exchange rate regime and the automatic fuel pricing mechanism.

“Bringing inflation down to single digits and boosting official foreign exchange reserves remain key policy objectives,” Furusawa states.

The IMF boss stressed that addressing weaknesses in public financial management is necessary to restore donor confidence and foster donor re-engagement.

“The authorities’ steadfast implementation of a comprehensive strategy in this area remains an urgent policy priority,” he added.

IMF noted that the Reserve Bank of Malawi is committed to tightening monetary policy as needed to keep inflation on a downward path.

It noted that measures taken in late 2014 have already helped reduce liquidity and stabilize the currency. Steps underway to curb deficit financing by the central bank should enhance the credibility of monetary policy.

Malawi Finance Minister Goodall Gondwe has since said the IMF’s disbursement is a “refreshning news” for the country.

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45 thoughts on “IMF approves US$ 18.1m for Malawi: Impressed with economic outlook”

  1. masa masina says:

    Katapira is katapira. They is no honour in being a begger.

  2. BRAVO IMF KEEP IT UP.THOSE WHO LOVE HER NEVER TALKING NONSENSELESS

  3. chefourpence says:

    Boma ilooooo! Enanu mukwiyatu! Musowa cholongololera. Nsanje basi. Chi Fedulo. Kkkkkkkk DPP woyeeeeee

  4. proud parent says:

    Praise God. Resume employment graduates are just loffing.

  5. Mbwiye says:

    KODI MA MP OPUSA TILI NAWO KU MALAWI KUNO NDI STUPID LEADER OF OPPOSITION SAPITA KU PARLIAMENT KUKAPANGA MOTION YOLETSA IMF KUPELEKA NDALAMA KU MALAWI? BRAVO APM!

  6. papa says:

    Opempha ndalamazi adyeko basi sitidandaula ife ngati timaziziwa?

  7. Mweneeee says:

    Zikomo, tizinyambitenso

  8. Phodogoma says:

    Bravo old guards Mr. Mbosho wa Mbosho and Mr Mathanyula for unlocking IMF loans. This is just an open gate to other economic facilities like world Bank and other prominent donor countries. We moving towards the positive direction old men. Many dinyeros will start pouring into this country. DPP woyeeeeeee.

  9. nyowani says:

    ndiye mubensonso mbava inu

  10. ujeni says:

    Zoti Malawi will start developing soon will never happen, not yet anyway. From the comments salivating at a paltry $18m shows how poverty minded the majority of Malawians are. $18m cant even finance a boxing match in USA.

  11. ujeni says:

    Next time this govt need a small change of $18m, call me i will give them. What is $18m, not even enough to buy a Ferrari

  12. Joseph Banda says:

    #1 that is not begging. IMF does not give out handouts. It lends to meaningful projects to countries. DO NOT WASTE TIME ON BEERS, CHASING WOMEN WHO DO NOT LOVE YOU, but spend a lot of time reading topical books in Economics made simple or Financial Management made simple> NO.! ULI NDI UMBULI ZEDI

  13. chisomo kachale says:

    Tisamveso kuti wina akupisamo ayi chifukwa awa ndimayeselo kwa Malawi kuti pathawi ino tiyendesa bwanji chithandizo chimenechi chonde takhulupilikani pokhapa kuti dziko liwone kusintha.

  14. amp says:

    mukapeza nthawi muerenge confessions of an economic hitman. just google or buy it.

  15. victim Chamkhuni Lwazazi says:

    Good news for mother Malawi. Congrants Goodhal and Peter. However, let’s investigate the MK 91 Billion as well so that we are not seen to be hiding our own evil deed. We should all unit and pray for our country.

  16. Museweletsenso…..

  17. Countryperson says:

    Great news! Please keep it up

  18. The Truthful One from the West says:

    Comment: What I find interesting is that the economic policy measures taken by Joyce Banda-flexible exchange rate and automatic fuel pricing mechanism-is what is causing IMF to approve the programme. Note that the Peter Mutharika govt did not fulfill a number of creteria and had to ask IMF for a waiver. It is also quite obvious that MRA is underperforming causing deficit financing. It is not true that the old Goodall Gondwe is performing. He is a spent force.

    1. JJB says:

      Change the record. Its becoming boring.

  19. The one says:

    Let the work of his hands speak for prof Arthur Peter Mutharika and the mighty DPP. # mightyDPPforlifeanaachepa

  20. chadango says:

    There is no country on earth that doesn’t live on credit. Most people in the developed countries buy things on credit thus why they have credit cards and that’s why others are forced on the streets because they have either failed to service their mortgage . So what is long with Malawi to not survive on credits? This is why very few can afford a new car because we believe in transacting on cash basis which we also do not have in abundance and hence resort to buying second hand cars at the expense of our environment.

  21. Mvula J. Mvula says:

    As Malawians, do we have an analysis of how much debts we have with both the Bretton Woods Institutions and any other so called Good Samaritans. Could it be that we have debts that this generation, the next and even the third will not be able to pay back? Could it be that we have already enslaved ourselves and remain to dance to the tune of these institutions. Who could provide this analysis?

  22. Atate with Kamphongo wa kwa Masikini says:

    Good policies by APM? Keep it up!!!

  23. Nyakanyasu says:

    Sounds a good development for Malawi. My keen interest remains on how best we’ll utilise and implement the ECF effectively and efficiently. We need transparency and accountability pls pls…

  24. BigMan says:

    My fellow Malawians, Joyce Banda crippled us.

  25. kapilikoni says:

    Ndiye mukuti Bright Malopa wagula 2013 Rolls Royce? Ndiye kuti Castle yake ija wamaliza kulipira? Ndaonanso kuti Ben Phiri wagula 2014 Mercedes S 500 AMG yokhala ndi ma exhaust pipe 4! Ndikanva kuti wina akufuna kugula ndege or helicopter ndi ndalama za muthumba mwake sindidabwa!

  26. Chikopa says:

    Ma comment anu achibwanawo muzikakamba ku facebook osati pa nyasa pano, kasewelene uko

  27. ujeni says:

    A country of fools, kunyadira $18m for a country zoona zimenezi, while peter has $8m personal money stashed in US bank. A country should be recieving in ranges of over $400m, check other countries how much they recieve from these external orgs like IMF

  28. Mtunda says:

    Comment
    It is normal for any country to borrow and it is part of economic growth or management. What is important is the discipline to managing it. Bravo the Malawi administration, keep on implementing and observing the fiscal discipline and controls for a better Malawi!

  29. chejali says:

    Tipatsenidini kuti akhakhakhawa opanda chisoniwa adyenso.

  30. Fathara says:

    Thank u JESUS we worship our name. Let our name be pleased.

  31. Okhrana says:

    Peter Mathanyula Wakuba, wagwanayotu, umasangalalatu when donors dumped Mw. Hehede ulu. Yes tizidalira ma loan, nanga si zero deficit mudaikana. Tel ur papa azapange budget without aid in 2035 hahahahaha icho!

  32. Nyani wa ku Mwananyani says:

    One cannot fail to show pride in how respectful the IMF guys were when they were facing APM and minister Gondwe. Two heavyweights of the current government.
    IMF understands that the current leadership can make sense out of economic formulas, not just statements. Unlike that JB government; water under the bridge, washed to the lake, a long time ago! Malawi is slowly, but surely, getting it’s swagger back.

  33. Titoh says:

    Anthu enanu munabadwa modabwitsa coz Mr p akati apange ichi muvekele cimenechi ayi bola munakapanga iyi munthu atani tikudzwa sangakhale wabwino kwa tonse

  34. This is good for the country to move forward but it should also have postive impact on the peoples life

  35. Phiri says:

    Nkhani yabwino imeneyi.

  36. Bololo says:

    Good progress. Let the fiscal side not lose focus. Let’s create room for curbing inflation and reducing interest rates that will in turn allow the economic agents to access cheaper funding and grow, government inclusive. First things first.

  37. Hehede! Kunyadira ngongoleyo! Hahaha. What kind of life is this that we live from loan to loan? Ha! Achimwene musaope ngongole ♪ ♫ ♬ mukuopa muzagona ndi njala ♪ ♫ ♬ shame

    1. Ralph Kachindankhuku says:

      You stupid fellow uzafa imfa yowawa. Nsanje basi. Munthu otani osafunira dziko lake zabwino.

      1. yohane says:

        Once ngongole imati thandiza but there is nothing to smile on. The loan amachita kutilalatila ngati with dzabwenza.

      2. powder says:

        ngosaganiza uyu, wopanda nzeru, wanjiru, wo…. i think is afederal type person. abusa mukumva bwa, ma ngo otumidwa mukumva bwa! let the hands of the trio, ‘apm,scc and aka goodall g’. satana achite manyazi! congrats guys! i like your passion! kp it up!

      3. Mike siliya says:

        Comment thats good i hope there will be sigh of releaf. Koma osasoloranso chifukwa akwiyanso azunguwa.

  38. boney m says:

    still begging in expensive suits. and so it came to pass……

    1. powder says:

      thumb up where its due, nsaje basi! nkhuku yanjiru siswa bambo. mukhalira zomwezo anzanu akudutsa komaso kupanga mbiri ya success! with these recommens prosperation of malawi is at hand. zimenezi ndizo zibweretse massive votes for dpp in 2019

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