The International Monetary Fund (IMF) Board has completed its assessment of Malawi’s performance on its Extended Credit Facility (ECF), allowing the global lender to make the loan of about K102.7 billion ($140 million) to be disbursed over a three-year period.
Gondwe: IMF nod may see some development partners releasing direct budget support.
The approval follows the IMF boss meeting in Washington DC on Monday April 30 2018 and enables an immediate disbursement of about US$16 million. The remaining amount will be phased over the duration of the program, subject to semi-annual reviews.
IMF board based its decision on the country’s microeconomic stability as a catalyst for economic growth.
“Malawi has shown progress in achieving macroeconomic stabilization following two years of drought, with a rebound in growth and inflation reduced to single digits. However, the fiscal position has deteriorated and the public debt to GDP ratio has risen. Increased debt service pressures have reduced space for needed infrastructure and social spending,” said IMF Deputy Managing Director Tao Zhang, in a statement after the board approval.
The new ECF program will focus to stabilise foreign exchange rates. interest rates, among others for the country to register high levels of growth.
“The medium-term economic outlook is favorable, with private sector activity expected to benefit from better infrastructure and an improved business climate. Progress will depend on the authorities’ strong ownership to support successful implementation of their program.”
Minister of Finance, Goodall Gondwe described the development as “very positive” because it “signals” that the country is on the right track with the economic agenda and “will help push for the much needed return of budget support.”
He said: “We [Malawi] are one of the few countries in the southern African region which has received the [IMF] nod. Among other things, the programme has been looking at government borrowing and management of foreign reserves, areas where we have done well.”
Malawi last ECF program valued at US$156.2 million which was approved in 2012, expired in 2017.
Meanwhile, the IMF has advised government to enhance transparency in its budget process as well as strengthen its medium term budgetary framework and cash management.
IMF representative in Malawi Jack Ree said as things stand now, the possibility of donors bouncing back cannot be ruled out.
Gondwe assured the government with continue its positive strides in the area of public finance management to prevent the misappropriation of public funds and rebuilding trust and confidence in the budget process.
Incessed by revelations of mismanagement of public funds at Capital Hill, widely known as Cashgate in 2013, Malawi’s key donors—who historically contributed about 40 percent to the recurrent budget—withdrew their direct budgetary support worth $150 million, leaving behind a huge fiscal gap.
To date, the donors, some of whom have described the Malawi Government Account Number One as “a leaking budget”, have since been assisting Malawi through off-budget support mechanism.
With the budget session starting on May 4, IMF has since advised Malawi to enhance transparency in the whole budget process as well as strengthen the medium term budgetary framework and cash management.
The ECF programme is aimed at achieving and maintaining macroeconomic stability and implementation of policies and structural reforms to spur growth, diversify the economy and reduce poverty.
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35 replies on “Malawi gets IMF loan nod: Goodall sees it as ‘signal’ of donor confidence”
The huge appetite of over borrowing by government must be checked. Don’t overburden future generations with repayments when what you did with the loans was only stealing the money into your never satisfied pockets.
Great achievements u are proving to Malawian that government can be run by old mature people long live Goodal and Peter othamangira ku mnsewu ndi PAC adziwe zoona ndi chikondi cha Mulungu pa inu ndi dziko lathu
Headteacher you have a point. Malawi lost out during the period 1964 – 1994. Remember during this period Malawi was getting unconditional donor support not on account of good financial management but because of the Cold War between USA and USSR. Tanzania to our north and Mozambique to our east followed the socialist form of government. To keep the devil in Malawi conteted, donors were dishing out aid without conditions. If that aid were put to good use the country would have developed beyond recognition. But alas!!!
Surprise! Most of that money went straight into Kamuzu Banda’s, Tembo’s, Kadzamira’s bank accounts (mostly outside Malawi) and many MCP top guns’ of that day. The money was flowing in like tap water, never turned off.
The corruption was so open – open season all seasons – as MCP and their Kamuzu ruled by fear, almost Hitler style.
Talk about “cashgate”? That was it, starting in the 60s. And there are many people who are alive now, and can attest to this.
MCP – the originators of corruption, and theft of public money.
If these loans were put to proper use we would have long stopped getting more unnecessary ones.
Another DPP self-delusional ploy to fool innocent Malawians. For over 15yrs now this oldman, year-in year-out, has been giving Malawians false hopes and expectations. IMF this World Bank that, DPP government this, blah! blah!
The reality on the ground talks volumes to the contrary. Economic indicators are at an all time low (we have become the poorest nation on earth, GDP ,etc). Goodall has also presided over the demise of MSB (kupinyolitsa bank to conmen).
Trust this oldman (he is not a baby) at your own peril. He is a DELINQUENT.
SHAME on thieves!!!
More and More loans to feast corrupt politician. Our minister is so happy
Long live Peter Long live Goodal they cheat government can be run by young people never they want to get in to steal
It took four years for the new government to sort out the mess that was created by Joisi Banda and her thieving PP. And now, the efforts are bearing fruits, and the fruits are ripening. Ready to eat by next year’s elections.
The timing of this assessment and next elections is not a coincidence: clearly, the IMF would have more confidence with the current drivers, than pretenders (MCP), in control. Others (MCP) would have taken this as a stamp of approval; but our current DPP leaders ONLY take it as sign of CONFIDENCE. That shows one big difference in the levels of sophistication between the two camps, and their modus operandi.
Talk about coincidence, again: with the arrival of Joisi Banda just a couple of days ago, this assessment ingomuchita block basi.
APM, Gondwe, Chilima et al., tikungoti wawawawa! Asa. Team DPP singaluze chaka cha m’mawachi – by then improvements in service delivery to the public will be evident even to the half-closed eyes of detractors. MCP and their acolytes, like Times Group.
This is not good news to be happy about. Dziko lathu mpaka lero tikudalilabe ma donors. Bolanso Bingu first term adali ndi maganizo oti tiyambe kuziyimila patokha. Not only this money will be misused but palibe chomwe chitaonekepo chosintha. A Malawi ngopusadi
ULEMU WANU MA BIG ULEMU WANU, WORK EXTRA HAD KUTI WANSANJE APHULIKE,TIKUNENA PANO AKATOLIKA, KAJOLOWEKA,CHAKWELA NDI MTAMBO MITU SIKUGWILA.NGATI MUNTHU OFIILA KHUNGU WAFIKA POYAMIKILA NDIYE KUTI MABIG NTCHITO MUKUYIPOTA,NDI GWAPE WINA WANGOTULUKA MUSUPA AMVEKELE TIMATCHA,ZOPUSA!! MUSAFOWOKE MABIG NDIPO WANSANJE AKAKOLOPE LAKE MALAWI.
Moya and Hillary Clinton participated in the demons. I am told they had a night of prayer presided by the fallen pastor asking heaven not to allow IMF approve the facility. Yes we are celebrating the loan because it’s only individuals and institutions with good credit rating that get loans. Umafuna zaulere? It is such shallow thinking and babies like you that have created donor fatigue. We are not celebrating loans but improved credit rating yomwe Amai anaiononga. Izi zachitika nthawi yabwino, atangofika kumene kuti azionere okha chifukwa zakumva kupweteketsa mutu. Amai economy munainonga ija komanso kuithawa, APM ndi team yake aikonza. Pa May 2019 Amai osadzalakwitsa. Muzavotere APM ndi chipani chake kuti mupitilire kukhala mdziko muno paja mumadana ndi economy yomwe silibwino that’s why you ran away for four years.
GOD HAS SAID YES, IMF HAVE ALSO SAID YES AMALAWINSO NAWO AYENERA KUNENA CHIMODZIMODZI, 2019 DPP BOMA AGAIN!!!!
Awatu a IMF ndi akatakwe pa zakayendetsedwe ka Chuma ndisamvenso wina with fake American accent ejaculating the opposite.
They are happy because they know they will build mansions and nice cars so that poor pple can salute them
Malawi is mostly occupied by people and leaders of low IQs. Where on earth would a nation be celebrating a loan? How many loans have we gotten and are yet to be repaid? Loans from India, China, ADB name it. What is the wisdom in rejoicing to getting additional loans? I thought the only thing now would be to celebrate if and only if We had gotten the capcity to start repaying the outstanding loans? Useless political affiliations are indeed a curse to the nation.
Why put the unborn children of Malawi in debt? They will have to pay for it. Whilst you are the consumer and exiting? This should worry every concerned citizen. God help us
Even the UK government is also borrowing..
The US has lots of Debts gotten from China…
So what are you saying?
Because the current population is less productive and all it knows is to reproduce without thinking and perpetuate cultural practices that put our economy down. For example, what does Malawi produce? Our resources are pressured so much that we can only depend on these loans. Possibly, when our children in the future are overburdened by debt they will change their attitude to life.
All Malawian know that you are the only one who can bring eco nomy back that is why opposition fight to bring you down becoz if you are there they will fail to win 2019 God bless Malawi. God bless Peter God bless Goodal Gondwe
Mwachekula wadada u dont know what u r talking go home. When did u start saying this 4 years ago any donor will never trust u anymore
Good news
Let us appreciate instead of looking for small faults. Kudos to the Madala.
Appreciate taking a loan?
should we appreciate because of the loan? do u what this means?
Congrats to APM and Gudall , CSO’s should now demonstrate in happiness of the development as it’s not a small achievement. The 4bn was just a plan, it’s not even made available and Malawians don’t even know that , in fact CSO’s has denied the poor Malawians to have direct access to use part of the 4bn to develop their own constituency. Let’s first understand the whole scenario before reacting.
true, a plan to thieve
Congratulations Dada Gondwe; you were right, running Government is not for babies. If the economy is on tract, it means the man stiring the ship knows what he is doing. I have never seen a team removing the coach who is bringing good results nor putting a player on bench who is scoring goals. APM’s team is delivering good results. It is only a mad group of fans that can change the team and Malawians are not mad therefore the DPP team must not be changed come May 2019.
It is only CSOs that are acting ultra vires, criticizing government instead of promoting same sex marriages per their mandate, that dream of removing the most performing team. There is no alternative to DPP. In Malawi we have only two parties namely UDF and DPP with election victory experience to govern a multiparty government. If you know any other party in Malawi, let me know. 2019 DPP BOMA AGAIN.
Ndingongoletu iyi. IMF has not given loans to this administration only. ALL other administrations have received loans from IMF, so there is no need for a sensible person to celebrate .
The sooner we get rid of Goodall, the better
Anthu osayamika. This is good news
There people really plunging the Mario into a deep hole. Looking to the day Malawians will ask up to understand that a borrower is a slave to the lender. Sept is a modern way of slavely. We a nation of slaves. Had we known that the American government simply creates figures in the computer and give us money I which we have to work for it. Watch the Creature from Jacal Island on Youtube. You will understand what these people are doing to us
The huge appetite of over borrowing by government must be checked. Don’t overburden future generations with repayments when what you did with the loans was only stealing the money into your never satisfied pockets.
Great achievements u are proving to Malawian that government can be run by old mature people long live Goodal and Peter othamangira ku mnsewu ndi PAC adziwe zoona ndi chikondi cha Mulungu pa inu ndi dziko lathu
Headteacher you have a point. Malawi lost out during the period 1964 – 1994. Remember during this period Malawi was getting unconditional donor support not on account of good financial management but because of the Cold War between USA and USSR. Tanzania to our north and Mozambique to our east followed the socialist form of government. To keep the devil in Malawi conteted, donors were dishing out aid without conditions. If that aid were put to good use the country would have developed beyond recognition. But alas!!!
Surprise! Most of that money went straight into Kamuzu Banda’s, Tembo’s, Kadzamira’s bank accounts (mostly outside Malawi) and many MCP top guns’ of that day. The money was flowing in like tap water, never turned off.
The corruption was so open – open season all seasons – as MCP and their Kamuzu ruled by fear, almost Hitler style.
Talk about “cashgate”? That was it, starting in the 60s. And there are many people who are alive now, and can attest to this.
MCP – the originators of corruption, and theft of public money.
If these loans were put to proper use we would have long stopped getting more unnecessary ones.
Another DPP self-delusional ploy to fool innocent Malawians. For over 15yrs now this oldman, year-in year-out, has been giving Malawians false hopes and expectations. IMF this World Bank that, DPP government this, blah! blah!
The reality on the ground talks volumes to the contrary. Economic indicators are at an all time low (we have become the poorest nation on earth, GDP ,etc). Goodall has also presided over the demise of MSB (kupinyolitsa bank to conmen).
Trust this oldman (he is not a baby) at your own peril. He is a DELINQUENT.
SHAME on thieves!!!
More and More loans to feast corrupt politician. Our minister is so happy
Long live Peter Long live Goodal they cheat government can be run by young people never they want to get in to steal
It took four years for the new government to sort out the mess that was created by Joisi Banda and her thieving PP. And now, the efforts are bearing fruits, and the fruits are ripening. Ready to eat by next year’s elections.
The timing of this assessment and next elections is not a coincidence: clearly, the IMF would have more confidence with the current drivers, than pretenders (MCP), in control. Others (MCP) would have taken this as a stamp of approval; but our current DPP leaders ONLY take it as sign of CONFIDENCE. That shows one big difference in the levels of sophistication between the two camps, and their modus operandi.
Talk about coincidence, again: with the arrival of Joisi Banda just a couple of days ago, this assessment ingomuchita block basi.
APM, Gondwe, Chilima et al., tikungoti wawawawa! Asa. Team DPP singaluze chaka cha m’mawachi – by then improvements in service delivery to the public will be evident even to the half-closed eyes of detractors. MCP and their acolytes, like Times Group.
This is not good news to be happy about. Dziko lathu mpaka lero tikudalilabe ma donors. Bolanso Bingu first term adali ndi maganizo oti tiyambe kuziyimila patokha. Not only this money will be misused but palibe chomwe chitaonekepo chosintha. A Malawi ngopusadi
ULEMU WANU MA BIG ULEMU WANU, WORK EXTRA HAD KUTI WANSANJE APHULIKE,TIKUNENA PANO AKATOLIKA, KAJOLOWEKA,CHAKWELA NDI MTAMBO MITU SIKUGWILA.NGATI MUNTHU OFIILA KHUNGU WAFIKA POYAMIKILA NDIYE KUTI MABIG NTCHITO MUKUYIPOTA,NDI GWAPE WINA WANGOTULUKA MUSUPA AMVEKELE TIMATCHA,ZOPUSA!! MUSAFOWOKE MABIG NDIPO WANSANJE AKAKOLOPE LAKE MALAWI.
Moya and Hillary Clinton participated in the demons. I am told they had a night of prayer presided by the fallen pastor asking heaven not to allow IMF approve the facility. Yes we are celebrating the loan because it’s only individuals and institutions with good credit rating that get loans. Umafuna zaulere? It is such shallow thinking and babies like you that have created donor fatigue. We are not celebrating loans but improved credit rating yomwe Amai anaiononga. Izi zachitika nthawi yabwino, atangofika kumene kuti azionere okha chifukwa zakumva kupweteketsa mutu. Amai economy munainonga ija komanso kuithawa, APM ndi team yake aikonza. Pa May 2019 Amai osadzalakwitsa. Muzavotere APM ndi chipani chake kuti mupitilire kukhala mdziko muno paja mumadana ndi economy yomwe silibwino that’s why you ran away for four years.
GOD HAS SAID YES, IMF HAVE ALSO SAID YES AMALAWINSO NAWO AYENERA KUNENA CHIMODZIMODZI, 2019 DPP BOMA AGAIN!!!!
Awatu a IMF ndi akatakwe pa zakayendetsedwe ka Chuma ndisamvenso wina with fake American accent ejaculating the opposite.
They are happy because they know they will build mansions and nice cars so that poor pple can salute them
Malawi is mostly occupied by people and leaders of low IQs. Where on earth would a nation be celebrating a loan? How many loans have we gotten and are yet to be repaid? Loans from India, China, ADB name it. What is the wisdom in rejoicing to getting additional loans? I thought the only thing now would be to celebrate if and only if We had gotten the capcity to start repaying the outstanding loans? Useless political affiliations are indeed a curse to the nation.
Why put the unborn children of Malawi in debt? They will have to pay for it. Whilst you are the consumer and exiting? This should worry every concerned citizen. God help us
Even the UK government is also borrowing..
The US has lots of Debts gotten from China…
So what are you saying?
Because the current population is less productive and all it knows is to reproduce without thinking and perpetuate cultural practices that put our economy down. For example, what does Malawi produce? Our resources are pressured so much that we can only depend on these loans. Possibly, when our children in the future are overburdened by debt they will change their attitude to life.
All Malawian know that you are the only one who can bring eco nomy back that is why opposition fight to bring you down becoz if you are there they will fail to win 2019 God bless Malawi. God bless Peter God bless Goodal Gondwe
HAPPY WITH A LOAN? BULSHIT
Yeah…
Bravo amdala. Wakwiyayo ndimfiti. Akakolope kunyanja.
Akawedze nsomba from a bottle of coke
Mwachekula wadada u dont know what u r talking go home. When did u start saying this 4 years ago any donor will never trust u anymore
Good news
Let us appreciate instead of looking for small faults. Kudos to the Madala.
Appreciate taking a loan?
should we appreciate because of the loan? do u what this means?
Congrats to APM and Gudall , CSO’s should now demonstrate in happiness of the development as it’s not a small achievement. The 4bn was just a plan, it’s not even made available and Malawians don’t even know that , in fact CSO’s has denied the poor Malawians to have direct access to use part of the 4bn to develop their own constituency. Let’s first understand the whole scenario before reacting.
true, a plan to thieve
Congratulations Dada Gondwe; you were right, running Government is not for babies. If the economy is on tract, it means the man stiring the ship knows what he is doing. I have never seen a team removing the coach who is bringing good results nor putting a player on bench who is scoring goals. APM’s team is delivering good results. It is only a mad group of fans that can change the team and Malawians are not mad therefore the DPP team must not be changed come May 2019.
It is only CSOs that are acting ultra vires, criticizing government instead of promoting same sex marriages per their mandate, that dream of removing the most performing team. There is no alternative to DPP. In Malawi we have only two parties namely UDF and DPP with election victory experience to govern a multiparty government. If you know any other party in Malawi, let me know. 2019 DPP BOMA AGAIN.
Ndingongoletu iyi. IMF has not given loans to this administration only. ALL other administrations have received loans from IMF, so there is no need for a sensible person to celebrate .
The sooner we get rid of Goodall, the better
Anthu osayamika. This is good news
There people really plunging the Mario into a deep hole. Looking to the day Malawians will ask up to understand that a borrower is a slave to the lender. Sept is a modern way of slavely. We a nation of slaves. Had we known that the American government simply creates figures in the computer and give us money I which we have to work for it. Watch the Creature from Jacal Island on Youtube. You will understand what these people are doing to us
Please watch this link to know that we are a nation in modern slavery
https://youtu.be/lu_VqX6J93k