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The Executive Board of the International Monetary Fund approved a disbursement of US$88.327 million to Malawi under the new mechanism Food Shock Window of the Rapid Credit Facility
The Executive Board of the International Monetary Fund approved a disbursement of US$88.327 million to Malawi under the new mechanism Food Shock Window of the Rapid Credit Facility. Malawi is the first low-income nation to receive financing under this scheme, which operates for one year.
Countries that have an urgent balance of payment due to food insecurity are eligible to avail of this facility to cushion to meet the sharp increases in food imports. Among 48 countries identified by the IMF as the most food insecure countries, Malawi figures prominently. The sordid situation has arisen mostly because of the outbreak of the Russia-Ukraine war, which was preceded by the Covid-19 pandemic.
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Recently, the IMF Executive Board approved the Staff-Monitored Program. The agreement, informal in nature, will enable the Malawian authorities to build a track record of policy implementation before it possibly implements an IMF-supported program. In the meantime, Malawi has been asked by IMF officials to swiftly implement the debt restructuring strategy to bring down its vulnerability on account of the mounting debts.
