Malawi requested four-year credit facility, says IMF
The country has been experiencing acute foreign currency shortages and allowed the kwacha to weaken 25% against the dollar in May
06 June 2022 - 17:44
by Alexander Winning
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Blantyre — Malawi has requested a four-year extended credit facility to help with balance of payments difficulties, the International Monetary Fund (IMF) said on Monday.
The donor-dependent country has been experiencing acute foreign currency shortages. Late in May it allowed its kwacha currency to weaken 25% against the dollar.
"The authorities have requested an arrangement (on) the back of the protracted balance of payments problem," the IMF said in a statement after talks with Malawian government officials and private sector representatives.
The fund said restoring debt sustainability and resolving a case involving alleged misreporting of foreign-exchange reserves were pre-requisites for IMF support.
"While the authorities are addressing these issues, the IMF team conducted a mission to agree on (a) macroeconomic framework, policies and reforms," it said.
The IMF said it welcomed the move to normalise the forex market and that Malawi’s authorities had engaged a debt adviser to support efforts to address unsustainable public debt.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Malawi requested four-year credit facility, says IMF
The country has been experiencing acute foreign currency shortages and allowed the kwacha to weaken 25% against the dollar in May
Blantyre — Malawi has requested a four-year extended credit facility to help with balance of payments difficulties, the International Monetary Fund (IMF) said on Monday.
The donor-dependent country has been experiencing acute foreign currency shortages. Late in May it allowed its kwacha currency to weaken 25% against the dollar.
"The authorities have requested an arrangement (on) the back of the protracted balance of payments problem," the IMF said in a statement after talks with Malawian government officials and private sector representatives.
The fund said restoring debt sustainability and resolving a case involving alleged misreporting of foreign-exchange reserves were pre-requisites for IMF support.
"While the authorities are addressing these issues, the IMF team conducted a mission to agree on (a) macroeconomic framework, policies and reforms," it said.
The IMF said it welcomed the move to normalise the forex market and that Malawi’s authorities had engaged a debt adviser to support efforts to address unsustainable public debt.
Reuters
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