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.
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 saidFollow and Subscribe Nyasa TV :