Mutharika ‘delighted’ with IMF’s aid resumption: Analysts caution Malawi govt

President Peter Mutharika has said he is humbled with International Monetary Fund (IMF} resumption of aid to Malawi.

President Mutharika and Finance Minister Goodall Gondwe: IMF resume aid to the poorest country in the world

President Mutharika and Finance Minister Goodall Gondwe: IMF resume aid to the poorest country in the world

The IMF board on Monday nodded to an immediate disbursement of US$18.1 million (K8 billion) in balance of payment support to the country.

Mutharika said he is “delighted” to note that at the conclusion of the discussionMitsuhiro Furusawa, Acting Chair and Deputy Managing Director, observed that the DPP-led government is showing commitment to rebuilding trust in public institutions.

“I must say that my administration will continue to improve the available regulatory frameworks which are key to safeguarding financial sector stability,” he stated.

Mutharika asked Malawians to join hands to seal all the loopholes and tighten the financial management systems.

Minister of Finance Goodall Gondwe has also  said IIMF resumption of aid to Malawi was pleasing but said government will not rest on their laurels as they need to continue putting in place structures that will ensure good financial management.

Gondwe said IMF decision shows that the country has passed the test on its ability to manage its affairs.

“Of course they have given us criteria which we need to follow as well which we will make sure we do,” said Gondwe, citing the limit on borrowing from the banking sector and the improvement in the relationship between the Reserve Bank and the Accountant General to detect the reoccurrence Cashgate.

The Finance Minister, however, said as quoted by The Nation that the development does not mean it will automatically trigger a reaction from bilateral donors to reopen their budgetary support to Malawi.

“Budgetary support will not be resumed in the wake of this development because bilateral donors have since changed their policy in the way they will be providing their support,” Gondwe said.

He, however, said Malawi expects to receive budgetary support from the World Bank, the European Union and the African Development Bank in the 2015/2016 financial year.

“Infact the ADB are expected to start as early as June. But I don’t want to be euphoric. We need to continue to work hard and well in terms of how we are managing things. This includes putting in place structures that will ensure good financial management,” said Gondwe.

Meanwhile, analysts have asked the government to tread with caution and not to relax on fiscal and monetary policies as the economy remains fragile, Daily Times reported on Wednesday.

University of Malawi economics professor Ben Kalua who is based at Chancellor College in Zomba said the IMF disbursement will lep to ease forex woes in the country.

He said there was still need for a substantial budget support to address several other challenges the economy is facing.

“There is a requirement for more funding from other development partners. We only hope that the $18 million funding nod will help unlock the other budget support taps,’ said Kalua as quoted by Daily Times.

Kalua said government should not relax on fiscal and monitary policies adherence as “the economy remains fragile”.

An independent analyst and former Economics Association of Malawi (Ecama) President Edward Chilima said expectations of IMF aid that it will spur “ the authorities to go into overdrive so that the economy can start enjoying low interest rates, stable exchange rate and declining rate of inflation.”

 

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32 thoughts on “Mutharika ‘delighted’ with IMF’s aid resumption: Analysts caution Malawi govt”

  1. tozer tsono says:

    Cronyism and nepotism are the two most damaging factors to sound governance. Case in point, Peter Mutharika’s failure to advise his late brother Bingu Wa Mutharika on all the wrong decisions; like unleashing security officers on unarmed civilians in the North of Malawi, the murder of Chasowa and failure to prosecute the culprits, the costly and failed attempt to prosecute Muluzi and others, the failure to substantiate assassination allegations, and so many more mad-man decisions. Of course, the K92 billion unaccounted for makes one wonder why Peter can’t just say something about the money rather than engage foreign forensic auditors. The motivation to take over from is brother would seem to come partly from the fear of being implicated. Therefore, by the time another government comes to power, it will be even harder to figure out who all took part in the disappearance of the K92 billion. Let the foreign forensic auditors get to work, because owners of the country have no responsibility.

  2. diego says:

    Commendable, let sleeping dog lie, even if all roads were tarred to them no development!!

  3. Nzathu says:

    good news, i hope you not going to shapen your finger

  4. chatonda says:

    Please read Dead Aid By Dr Dambisa Moyo of Zambia, Why clapping hands as if its free money/ This money will make us dance to the IMF s tune forever. Also Read Confession of an Economic Hitman by John Perkins. You can google these books. Goodall Gondwe with his Tumbuka Respect, he nearly fell down bowing to Peter. Sorry.

  5. Mrs SAM Dalitso says:

    Tikhala. Iwe mfiti. Ulira suunati.APM Woyeee.
    Well done APM.

  6. tikhala says:

    Bwana, everytime you parade in public(you and your scarecrow) always remember this : only 37% of Mlawians want you- 63% don’t want to see you.

  7. Che Mangochi says:

    Thanks your excellecy for uplifting us for international recognazation specially with IMF.

  8. Nkhani yabwino ngati iyi kusowa ma comments kodi amalawi munakhala bwanji?

  9. Professor Graffiti says:

    18m is too meagre to start ululations.

  10. chabwerapyson says:

    Comment excellent big brains are really working keep it up.

  11. condom says:

    Great development keep it up!

  12. Samuel says:

    That’s good development Mr. President. The panicking is easing. But still stick to austerity measures. Seal all holes.

  13. Jimmy juga says:

    This is good news.

  14. Phaghlani Vwavwa says:

    $18 million is nothing. We have very serious problems in this country that requires serious money rather than $18m

  15. LABIA MOYO says:

    Ine ngati hule laps kamba palibe ndimva ine. Ngati hule zindipindulira Chani. Bola Albert asasiye kundikanda mauka. Wamva Albert kuMBC ko

  16. peb says:

    I like it. Keep it up anemu!! This is serious business

  17. Patriot says:

    Tiyambeno kupeza mwankhwala mzipatala.
    Tisamve kuti mwagawana ndi a prime minister.

  18. Offson Mzumara says:

    That agood development I hope the greatest is following

  19. That is good development!

  20. Hàrold kadzipatike says:

    CommentThat is a welcome development keep it up Peter and your government

  21. max says:

    Das a nyc move
    A real president like u sir must be delited with such development BRAVO PETER MUTHARIKA, BRAVO MA BELOVED PRESIDENT

  22. Nkhedu says:

    Thats a good start though i dont trust these azungus(IMF).Paja akayambapo zofuna zawo ndi a zwee

  23. Tengupenya says:

    IMF and world bank are facing competition from China. The weak will cling to IMF and IMF will cling to the weak. This is not a good sign, Ba Gondwe mwe!

  24. Phodogoma says:

    True Malawian which bank are talking about. Go and read Malawi Privatization Act if you have power to say nyonyo on government privatizing its property. The law makers made the privatization policy without any hindering factors as long as the government is ready.

    I know for sure that this the work of PP.PP is not interested in the selling of MSB. Yet this is one of the conditions for IMF to unlock its money. The very same thing happened with you PP and JB when you were in the government. You passed some of the policies which wrer nothing to us but a bitter panadol. Yes a bitter panadol that bitters in your mouth when just taking it when you are feeling headache. Yet after taking it you fell that the headache and all fever are gone. Who introduced automatic fuel pricing mechanisms in Malawi. Who influenced it? Who introduced a devaluation of over 300 percent without cushioning the locals? Not you useless PP and JB.So leave APM and DPP to do what they are capable. There is no many options on the table for the sale of MSB. It is being sold full. Just get prepared to mop lake Malawi or just lake Chiuta to its floor level.Ife a DPP tamuuziratu APM kuti nthawi yakwana kuti ife a DPP tiyambe kumva kukoma tsopano. Therefore all plans are underway to implement that.JB, Ken Msonda or PP or Chakwera you cant do anything. Just look at IMF’s teartment to us. Ndipo tiyambira 18 mita yomweyo. Ndalama sichepa ayi. Bomatu limakhala ngati hule ngakhale loboola amalandila mkumanda pambuyo. Ndiponso pali zodanda apa. Munthu(IMF) wosachedwa kukwiya ngati ameneyu.

  25. Sam Nyanja says:

    That’s welcome development.

  26. Kadakwiza says:

    President Muthalika is delighted while me Kadakwiza is not. I will start trusting professor Muthalika and his DPP administration only when I hear that the investigation of K92billion have started.

  27. maganizo wa maganizo says:

    What a good pairing.anakamuna, kuchitekete.mulungu si joni ayi.mbala zonse zimene zimafuna kutenga boma la peter atawina pa 20 may ali mmadzi.Mulungu sakanachitila mwina koma kutuma peter kuti apulumutse dzikoli limene limapita ku mphopho.Pano onse a PP akutuwa,kulangidwa chifukwa cha JBcashgate.

  28. ujeni says:

    This is not AID, IMF is not a donor, it gives LOANS which you pay back with interest just like our local banks do. Donors who give out grants and IMF are two different animals. Malawians are too stupid to figure out such difference, hence handclapping

    1. JJB says:

      Read widely, this is a 0% 10 year loan.

  29. Chikopa says:

    Its very good develpment , but mr president know this i have been here in RSA for the past 8days on busness trip , malawians are being robbed by police officers at the park station they know that this people have r3000 on there pockert , those who are coming back home and coming in seached like thievs , they are doing this to the malawias not zambian not to the zimbabwias why? Its not fair for someone who has worked here for 5years and being robbed by police officer at the bus station , this is serious mr president pick up your phone and talk to president zuma to dispri his officers. yours faithfully

  30. But make sure our bank is not sold. Find means of settling the billions you and your Dpp fellows own msb. That could be another form of cashgate.

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