IMF crew jets in Malawi next week: Goodall upbeat

Finance minister Goodall Gondwe is upbeat Malawi will qualify for IMF extended credit facility when the International Monetary Fund officials jet in the country next week for assessment amid poverty, high inflation and kwacha fall.

Goodall: Confident Malawi will get back on IMF track

Goodall: Confident Malawi will get back on IMF track

Gondwe said previous bottlenecks that put Malawi off IMF track included government heavy borrowing have been ironed out.

” As at 20 June, 2015, we had a debt hovering around K78 billion, but now we have brought it down to K8.4 billion although the IMF allowed us to borrow up to K58 billion. We are doing extremely well in this area which was a matter of their concern,” he said.

The IMF pulled out of Malawi due to economic mismanagement after a plunder of over K80 billion at Capital Hill in the infamous cashgate.

Spokesman for Finance ministry Nations Msowoya said the IMF team is expected on March 9.

“We have worked hard but well in areas they wanted us to work on since our last meeting. We have now improved on bank reconciliation, payroll audit and public finance management,” said Msowoya.

He however contradicted Gondwe when he said the debt stands at K4 billion.

“The scale down in borrowing will bring down the inflation and interest rates which will stabilise the kwacha,” he said.

However, Malawi Chamber of Commerce and Industry executive director Chancellor Kaferapanjira doubted the figures provided by the government on debt, fearing it might be as high as ever before.

He said government debt stands at US$3 billion.

“We are borrowing left, right and centre yet we are not borrowing for essentials. Future generations will pay higher taxes to repay these loans, the government is not taking advice, we are in total mess,” he said

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15 thoughts on “IMF crew jets in Malawi next week: Goodall upbeat”

  1. Second says:

    Mind you God is hory is never associated with thieves or criminals. So when asking God for mercy ushud first amend your ways. So does this government unite with God?

  2. TRURH says:

    MALAWIANS PLZ PLZ LETS LOVE OUR NATION TIYENI POMWE ATSOGOLERI ANTHU AKUPANGA ZABWINO TIWAYAMIKILEKO,TISAMANGONYOZA NTHAWI ZONSE. TISAYIWALE KUTI DZIKOLI TIDAWONONGA TOKHA CHIFUYKWA CHA NSANJE,TIMAPEMPHERERA KUTI MULUNGU ATICHITILE CHIFUNDO NOW MULUNGU WATIMVERA MVULA NDI IYI IKUBWELA BWINOYI PANO TIKUMVA IMF IKUBWELA,IS THIS NOT ENOUGH TO THANK GOD INSTEAD OF KUMANGONYOZANA?

  3. Wakutha says:

    When will minister Goodall stop lying? So you have met the domestic borrowing target?
    What about the borrowing from reserve bank? Since November 2015 close to k150 billion in ways and means has be converted so as to mask Govt exceeding the borrowing limit.
    And as if this was not enough, what about African development money that were cheatingly classified as Government deposits so as to mask real govt borrowing?
    k 4 billion ndaseka

  4. Dgm says:

    Who is giving the right information then? Minister, spokesperson of finance ministry or MCCCI chancellor? Why do you always want to confuse Malawians?

  5. therere says:

    We should all pray for this meeting to be successful, otherwise this is our last chance to convince them
    Malawians let us be patriotic

  6. Achi says:

    Its very unfortunate to see Govt having high hopes just cos IMF is coming.

    Who doesn’t know that govt gets busy borrowing money locally from parastatals just to window dress?

    DPP govt is wasting the time for Malawians. All donors have original copies of the cashgate reports, and they know all the names of the real cashgate thieves. Unfortunately, thieves featuring prominently in original cashgate reports are those who, today, are in ministerial positions posing as sheep.

    These are the people who go to IMF to beg for aid on our behalf. Which donor, in their rightful minds, would commit their taxpayers money to thieves?

    Until the DPP gets out of power, donor aid will remain a dream. If indeed the DPP loves this Malawi nation, let them pave way, for the sake of mother Malawi.

  7. BOKHO says:

    Very bad government

  8. Lexxxie says:

    They coming to tell us to devalue the Kwacha

  9. Concerned citizen says:

    Plz let’s not depend on these pple,let’s just work hard for a better Malawi,kodi Gondwe ,do u work for Malawians or for IMF,plz IMF,we don’t need u,we don’t need another cashgate cz even now it’s happening at the state house,,we suffered a lot about cashgate!

  10. imraan allan says:

    zovuta kumvetsa izi from 78bn to 8.4bn kkkkkk mwina a IMF atha kumvetsa bwino enafe masamu amativuta.

  11. Brian,MBA,BAac says:

    Abwere adzatiphedze nyatwazi.

  12. mjomba welewo says:

    Donor support will start in 2019 after Chakwera’s victory failing which forget it.

  13. Malungalunga says:

    These are the consquencies of poor choices we make. We had all the time to do right some 2 years ago and what did we do? We are in for it till another chance comes our way, unfortunately that will be three years from now. Tikanayisova guys, wakula watha.

  14. thom says:

    IMF please have mercy on poor malawians and give us the much needed aid, most of the country in not even earning usd2 per day. Please now show that IMF is there for poor countries and it is not an organisation that is unfair and inhumane.We beg for your help

  15. The Analyst says:

    O…………………………………………………………………………………………………………………………………………………………………………………………………………………….O
    You Good-All-Gondwe and your cohort are getting it all wrong . . .

    . . . Let it be put straight to your face in print and paper, that the IMF and other donors pulled out their support not necessarily because you were off-track with their programme or useless targets (coz you have always been) but because you guys are hard-core 5-star thieves.
    . . . Therefore, regardless of whether you meet those useless targets or not; if you dont seal the loopholes in govt payment system or just stop outright thievery of donor money; no aid will come to Malawi.
    . . .It is as simple as that.
    …………………………………………………………………………………………………………………………………………………………………………………………………………………………
    Also . . .
    Is a reduction from an allowable ceiling of K58 bn to K8.4 bn, realistic or sustainable? If it’s sustainable (when you have no donor financial support) why were you borrowing that much previously (when you had the support)? One thing is true here. Either . . .
    . . . your previous borrowings (which saw the debt hover around 78 bn), was unnecessary; OR
    . . . the reduction from 78 bn to 8.4 bn (in a space of 8 months) is not sustainable; and is merely meant to hoodwink the IMF into believing you are financially prudent?

    If the latter is true, why should govt reduce its debt levels and borrowing just to please the IMF and not because you believe is the right thing to do for Malawi?
    . . . Morality demands us to do the right thing; not because we are afraid of being punished or would want to please somebody; but because we know and believe that doing the right thing, is the right thing to do.
    O…………………………………………………………………………………………………………………………………………………………………………………………………………………………O

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