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An IMF MIssion was in Malawi recently for a week-long discussion to look into the possibility of reviving the International Monetary Fund (IMF)’s Extended Credit Facility( ECF) which was called off in 2020.
Economic experts are of the view that the ECF is the only program that can bail out Malawi from its deep economic crisis.The resumption of the ECF to Malawi will be decided at the IMF board meeting scheduled for July.
An IMF MIssion was in Malawi recently for a week-long discussion to look into the possibility of reviving the International Monetary Fund (IMF)’s Extended Credit Facility( ECF) which was called off in 2020. The IMF canceled a planned $70 million in loans to Malawi after it was discovered that it was given false information about how ECF funds were being used.The investigations into the case led to the arrest of the former governor of Reserve Bank of Malawi, Dalitso Kabambe, and former finance minister Joseph Mwanamveka.
At the end of the discussions,the IMF has put forward certain conditions to be met for the lender to consider the resumption of the ECF. It has asked Malawi to resolve the country’s unsustainable public debt and also to present a report on the alleged falsification of documents and use of the ECF funds between 2018 and 2020.
Sosten Gwengwe, Malawi’s finance minister, informed the press that as per the advice of IMF, the government has hired a qualified debt advisor Global Sovereign Advisory of France to address the problem.The debt advisor is expected to prepare a debt strategy and submit it to the Malawian Government in two weeks.
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