Afrexim Bank considers restructuring Malawi’s US$850 million debt

Afrexim Bank officials say they will consider restructuring a US$850 million debt Malawi has with the bank and the Trade and Development Bank to allow the country secure an IMF extended credit facility.

This follows President Dr. Lazarus Chakwera’s successful meeting with Afriexim Bank officials on Sunday when he m pleaded with the bank to consider a debt restructuring plan that would allow Malawi to secure ECF.

The loan was taken years back during the Democratic Progressive Party (DPP) reign.

Currently, Malawi owes Afrexim Bank and the Trade and Development Bank (TDB) a total of about $850 million, which the IMF wants to be sorted before committing to the ECF.

Malawi’s next assessment for its readiness for the ECF is due end this month.

Chakwera told Afrexim Bank President Benedict Oramah on the sidelines of the 30th Afreximbank annual conference currently underway in Accra, Ghana that the ECF would help in restoring Malawi’s repayment capacity by rebuilding reserves and reducing the macroeconomic imbalances the country was experiencing.

Oramah assured Chakwera that Afreximbank is in solidarity with Malawi’s pursuit of the debt restructuring mechanism to secure the ECF.