IMF extend Malawi loan programme

The International Monetary Fund has approved an arrangement for Malawi’s $150 million extended facility programme to June 30, 2016 to “provide additional time for the authorities to implement structural measures under the program.”

IMF loan programme extended - Finance Minister Goodall Gondwe with IMF's Williams
IMF loan programme extended – Finance Minister Goodall Gondwe with IMF’s Williams
Malawi's IMF programme  on track - Gondwe
Malawi’s IMF programme on track – Gondwe

A statement by the global lender said IMF executive board approved  the extension of US$ 146.7 million.

“The program is aimed at the achievement and maintenance of macroeconomic stability and implementation of policies and structural reforms to spur growth, diversify the economy and reduce poverty,” IMF said in a statement.

The IMF had suspended the programme following a scandal in which senior government officials siphoned millions of dollars from state coffers. Other international donors, led by Malawi’s former colonial ruler, Britain, also halted direct aid to the southern African nation over the scandal.

But in March this year, IMF announced it would resume Malawi’s extended facility programme.

IMF Mission Chief Oral Williams said Malawi had demonstrated a concerted effort to put the programme back on track, including improvements in public financial management.

Malawi has struggled to grow its economy due to declining export earnings from tobacco and in the absence of aid, which had previously accounted for 40 percent of its budget.

The IMF said it expects Malawi’s economy to grow by 3 to 4 percent this year after expanding by 3 percent in 2015.

But growth may be weather-dependent the Fund said, after an El Nino weather pattern triggered drought and heatwaves, threatening the staple maize and other crops.

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Little Bwana
Little Bwana
6 years ago

Damned if we do, damned if we don’t.

What are the chances that in 25 years I can say to my grandchildren, “you know, that day in 2016 when the IMF approved $150m was the day it all turned around for us – you’ll never know what it was like to be poor like we were. Your generation has it all.”

Same old rhetoric. Same old hands exchanging money and favors. Same old system. Same old same old.

6 years ago

IMF and world bank ensure that countries remain beggars , so african countries so we can remain there puppets. There was so much noise we are off track, but when we are n track they give us a meagre 146million dollars for 3 years with a lot of conditions, Dont be suprised when time comes for iMF to give the money they will declare Malawi off track again so they dont need to give the money. IMF supports kwacha depreciation since kamuzu went we have been following IMF policy of free flaoting kwacha and we are worse of then during… Read more »

Chileka Boyz
Chileka Boyz
6 years ago

My fellow country men and women, Please show me one country on earth where IMF or World Bank have gone in and managed to “Reduce Poverty??” and I will show you ALL the Poor countries inn the World where all their resources have been sucked up by these two economic axis if evil!!

Tell me please I am waiting??

6 years ago

Reduce poverty? Reduce poverty????????????????????????

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