MF dates Malawi on monetary reforms

Finance minister Sosten Gwengwe has announced that the Chakwera led-administration will engage the International Monetary Fund (IMF) to lay down its monetary reforms agenda.

Speaking at a press conference in Lilongwe, which was conducted jointly with Reserve Bank of Malawi, Gwengwe said: “IMF is coming to Malawi for the negotiation on whether our reforms agenda are viable or not.”

Gwengwe said Government is optimistic now that the reforms agenda will pass through the IMF requirements and that the country is ready to receive advice from them on areas of improvement.

Gwengwe flanked by Reserve Bank officials during the Press Briefing

“It is a two part mission. First is every other issue and second is the issue of debt sustainability. Debt is the elephant in the room. Our problem is not debt stock (less than 60% of GDP compares exceptionally well with the region and the continent) but we run a high debt servicing risk.

“We have procured a Debt Advisor by the name Global Sovereign Advisory with assistance from the EU to help us navigate through the Debt Sustainability Analysis that has been the center of the IMF latest Article lV consultation report for us,” Gwengwe said.

Gwengwe said Chakwera administration has turned to IMF programme as one of the key ways of getting back to macro economic stability amidst regional and global economic crisis.

The Finance Minister said for the past few months, two parties have intensified discussions with the Mission team in Washington DC.

He said this mission coming next week is an indication that there is some progress being made.

Gwengwe said the good news is that President Chakwera has had talks with the funds Managing Director Kristerine Georgiva three times.

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