Officials from the Reserve Bank of Malawi say the country’s debt, which ballooned to unsustainable levels during the Democratic Progressive Party rule, is now under control.
Figures from the central bank show total external debt reached K2.8 trillion as at the end of 2021.
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International financial institutions account for K1.9 trillion while bilateral development partners and commercial lenders had lent Malawi over K368 billion and K540 billion, respectively.
This has put debt service cost and interest payment at K90.9 billion and K18 billion, respectively, exerting fiscal pressure and affecting space for development expenditure.
This comes at the background of the country’s efforts to find a plausible path to address the country’s public debt which has passed the sustainable levels.
