IMF gives Malawi flicker of hope to resume lending

The International Monetray Fund (IMF) says it  will consider to resume extended credit facility (ECF) to Malawi in the 6th scheme after the end of mission to Malawi.

President Mutharika meets IMF Head of Mission Oral Williams at Kamuzu Palace - Pic by Stanley Makut

President Mutharika meets IMF Head of Mission Oral Williams at Kamuzu Palace – Pic by Stanley Makuti

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

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

Addressing a news conference in Lilongwe on Thursday, 18 December, 2014, the IMF representative in the country ,Oral Williams who was accompanied by  the Minister of Finance, Goodal Gondwe, said  the global lender’s mission and the Malawian authorities reached staff-level agreement on policies that could be supported under the ECF and the country would receive about US$20 million.

Williams said  policies geared toward bringing inflation down to single digits and increasing reserve coverage over the duration of the program were central to discussions with government.

“These encompassed measures to strengthen budget execution—key to ensuring delivery of its objectives—including safeguarding social spending, while maintaining a tight monetary stance to bring inflation to a downward trend,” he said.

IMF mission leader said the discussions also  focused on incorporating the recommendations of an IMF technical assistance mission on public financial management into the program.

“These recommendations are aimed at restoring financial controls and accountability in the face of the ‘Cashgate’ scandal,” said Williams.

“Addressing vulnerabilities in the financial sector that may have emerged in light of recent shocks faced by the economy were central to program discussions and included measures to strengthen the legal and regulatory frameworks to address sector-wide issues,” he added

Williams said for Malawi to receive support for EFC. he staff-level agreement is subject to review by the IMF’s management and its Executive Board in Washington. Consideration by the Executive Board is expected in early 2015.

The mission held discussions with President Peter Mutharika, Finance Minister Goodall Gondwe, Reserve Bank of Malawi (RBM) Governor Charles Chuka, Secretary to the Treasury Ronald Mangani, other senior government and RBM officials as well as representatives of Malawi’s development partners.

“The mission expresses its gratitude for the constructive spirit in which discussions were held,” said Williams.

Gondwe said IMF were impressed woith the good economic initiatives that the Mutharika government has undertaken since May.

International donors withheld aid after more than $40 million in government funds went missing between April and September last year in a scandal known as cashgate.

Meanwhile, Malawi’s government reforms programme has started   scrutinizing its public services to identify posts that can be eliminated to save money in the African nation that relies on aid for 40 percent of its budget.

“We must begin now to transform our public service into a service that is answerable and accountable to the people of Malawi,” vice president Saulos Chilima said on Thursday, adding: “This government will maintain an absolute zero-tolerance policy on corruption, graft, bribery and theft in government.”

Malawi has trimmed its cabinet to 20 from 36 to save about $40 million over the next five years, said Chilima, who si also chairman of the Public Service Reform Commission.

The cuts are part of efforts to meet economic growth that at least matches the 6.1 percent forecast by the government for this year, Chilima said .

The ECF is the IMF’s main tool for medium-term financial support to low-income countries. It provides for a higher level of access to financing, more concessional terms, enhanced flexibility in program design, and more focused, streamlined conditionality. Financing under the ECF currently carries a zero interest rate, with a grace period of 5½ years, and a final maturity of 10 years.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

27 thoughts on “IMF gives Malawi flicker of hope to resume lending”

  1. Samuel says:

    Some people do not appreciate. How can a wise go to donors and tell them not support Malawi. Utsogoleri amene aja udangowapeza mwa tsoka. They won’t benefit anything. If they go outside and perpetuate donors not to assist Malawi, where is patriotism there? They just expose there intellectual poverty. Mutharika and Chilima, just be busy with reforms don’t attend to these fools.

  2. While NACGATE is stil’ fresh?K92 billion CASHGATE/BINGUGATE is un resolved?

  3. BalakaGuy says:

    Wise words nama,tell them,we are nganga pambuyo pa Peter,till 2019 and we shall again vote for dpp.

  4. Josephy Lizibowah says:

    What the donors should know is that all the Malawians have now taken a lesson to monitor any activity being funded by the donors and taxpayers critically to avoid any mistake like what has happened in the cashgate scandal.

    According to the procedures that are supposed to be followed when carrying out any project, we have auditors, inspectors and the like who verify whether the activities are done according to the objectives of the projects.

    My special appeal goes to the donors to assist Malawi government as soon as possible. What I know actually is that president Prof Peter Mutharika and all Malawians are suffering for the sins that have been committed by the few individuals who have benefited.

    What the donors should know actually is that any delay to render aid to the needy people in the country can cause bad results.

    1. Think about shortage of ARVs and other drugs in hospitals
    2. Failure to fund other important projects on time

    What we should all know is that every individual whether man or woman employed or unemployed or those people having positions should live and work for the benefit of the people where ever you are and in whatever you do

    Please let us all change for the better so that the donors should have total confidence in us. Remember that when two dogs are fighting the third dog wins the bone that is poverty and the other thing is that when elephants are fighting the grass suffers which means that its we the local communities in the villages and towns suffer most.

    May God bless you all

    1. Wasowa chokamba iwe Josephy Lizibowah.Nanga NACGATE?

  5. JB says:

    The good thing about the president he does not waist time with these people FORWARD EVER BACKWARD NEVER.

    1. guest says:

      Be Forward

  6. Nama says:

    Anthu onuyo mukalamba simunati .All you look for ndikunyoza using internet ya Ku office solo ya ma bundle .Anzanu they are working ndipo Peter tikupempherera day and night .He will succeed inu mukupangidwa dismiss. Chifukwa chokhalitsa pa Nyasa and not being productive. Chonecho mumatukwana.When God opens a door no one can close Peter’s door was opened and he is here to stay.

  7. fkr says:

    Yes borrow the money to pay the chinese for a stadium, presidential Manor, hotels and other items that don’t educate people

  8. frank says:

    IMF chonde wosapatsa chithandizo amenewa m’paka atabweletsa report la mk92 billion yomwe inasowa muwulamuliro wa DPP

  9. mbuya says:

    Shaaaa…why cant IMF wait until we resolve the K92b robbery first?

  10. Epolo says:

    Munthu akugwira ntchito ndipo azungu avowera khakhale kuti amayi anapita kumakanama bodza kumeneko. kuiwala kuti iwonso mayiwo ndi mmalawi. anthu omwe adzimwaliraku chipatala ndi abele awo

  11. Wakwamanyamba Bango says:

    I think some piple are demon possesed they never appriciate anything Good or bad..

  12. ndatani says:

    Someone please say something am I sensing a breakthrough for DPP? If so then GOD be praised coz I just want my country to develop if not so achokapo tinasiya zosekelera zopusa

  13. chipoya LJ. says:

    My fellow Malawians especially you DPP haters, can’t you sometimes appreciate some good things and issues by this government?

    Isn’t this good news to all of us Malawians? Why still writing insults and irrelevant comments like the ones above.

    All in all, God Bless Malawi!!!

  14. Chikopa says:

    Zinthu zayamba pong’ono pang’ono kubwelera nchimache ndiye timumve wina akuti tikupita kuma demo anyamata ndi asungwana jb achina kwataine sembeleka mtambo chitani manyazi, kwacha ikuchita apreciate imf yapeleka signal mthawi ina iliyonse ayamba kuthandiza ndiye poti ngo ena mulibe mzeru muzisokonezabe paja pali wina yemwe mukumutumikila ,komanso some analist you should admit that muthalika has beaten you by 2-0 magin you told us that you see kwacha depre feather so all economical anaylist bad lucky , for mtambo and your team know that pro to elections we play for agood leader at the moment God is inmuthalika side because he is anointed one in what ever you do inthe name of jesus you will be defeated

  15. omar says:

    Good news for a dying malawi

  16. Angozo says:

    Stupid people always oppose anything even if somebody want to give them a relief.

  17. Bob Phiri says:

    Great government! Otsutsa muithawa dziko kulondola JB wanu ku USA.

  18. WAWA says:

    I dont trust this…they should not say support ..NOOO! Ndingongole ndiye idzathaliti? and who is going to pay for it ? POOR PEOPLE…The rich will put it into their pockets to support their families……..Malawi was much better in 70s-80s now we are in poverty … Created by INSTITUTIONS

  19. Ayaya says:

    a Malawi, tamaphunzirani kukamba zabwino za dziko lanu. most of u like amplifying negative news abt the country for personal issue. u must know Malawi is bigger than your personal vendatta. remember ther millions of people ~ poor people desperate to get government services. That is only possible if government secures donor suport. Please tasinthani. your comments should reflect that you @least understand tbe link between donor aid and the welfare of milions of vulnerable ppo Mmalawi muno.

  20. George Kanyoza says:

    stupid,,trimmed cabinet and hired 20 aids who are drawing more than cabinet ministers.

    1. Zadziwika says:

      If one of the 20 aides was your father, would you complain?? Amadya kunyumba kwanu???? Mind your own personal business at your home, develop yourself!!

    2. Mike Ngwira says:

      Liar. Can you list them by name? APM hired seven and not twenty advisors. Shame on you liar.

  21. Alfred Munduwabo says:

    Any news about MK92bn?

    1. Namalila says:

      This generally sounds to be a good news and let’s hope the people encrusted to run the affairs of the Government will put the money to good use if it comes.

    2. Zadziwika says:

      Keep on dreaming about the K92bn, it is in circulation within Malawi, hard workers are thinking about ways of developing their families and not crying over spelt milk. We had the K1.7 billion case, the K92 bn, the jetgate, oilgate, K13/ 20 bn, and now the NAC-gate, more are coming – all this will come to nothing – Malawians wake up!!!

Comments are closed.

More From Nyasatimes