Malawi IMF negotiate ECF

International Monetary Fund (IMF) says restoring debt sustainability and resolving misreporting are pre-requisites for approval of Malawi’s request for a four-year Extended Credit Facility (ECF).

This has been said after IMF team led by Mika Saito held discussions with Ministry of finance, reserve bank of Malawi and private sector from May 25 to June 3 after government request for a four-year ECF arrangement.

Saito said special audit report on official foreign exchange reserves of Reserve Bank of Malawi will form the basis for consideration of the pending misreporting of RBM Foreign Exchange Reserves by Executive Board of IMF.

“IMF team was told by government authorities that they have engaged a debt advisor to support their efforts in addressing Malawi’s unsustainable public debt,” Saito

Saito welcomed recent devaluation of Malawi Kwacha by 25 percent saying it is a step taken to normalize the forex market.

Speaking at a press briefing Monday morning, Minister of Finance Sosten Gwengwe expressed confidence that Malawi will get ECF program with IMF as the country is resolving issues of the debt levels and misreporting.

Gwengwe said there are high chances that government authorities have done a greater part.