IMF Team Jets in Malawi for ECF Review
An International Monetary Fund (IMF) mission team is in the country for a second and third review of the Extended Credit Facility (ECF) program that will lead to further disbursement of resources.
Minister of Finance Joseph Mwanamvekha told parliament on Monday that upon successful conclusion of the reviews, IMF will provide more financial resources to Malawi through augmentation as a response to effects of Cyclone Idai that hit some parts of the country in March 2019.
Mwanamvekha said Malawi might receive more financial support depending on the success of the reviews.
He said the first review was successfully conducted in September 2018 when Malawi met all necessary required targets that include fiscal discipline and macroeconomic reforms.
“To this effect, two disbursements amounting to 78.1 million Special Drawing Rights an equivalent to 22.3 million dollars have been made since the program commenced.
“The third ECF of 112.3 million US Dollars with the IMF is the center of Malawi’s macroeconomic stability,” said Mwanamvekha.
President of Economics Association of Malawi, Chiku Kalilombe, says is eager to see what will transpire between the two sides.
“We are looking forward to see if Malawi has met the set targets by IMF. From the government side, we believe they have continued to meet the targets and going forward. I believe the review will be a success.
“Unfortunately, we do not usually have access to the information before it is made public by the IMF after they have done their assessment and reviews. So we are also waiting with keen interest on that too,” said Kalilombe.
The program aims at fostering economic growth for the country.
Early last year, the team jetted into the country for a two-week discussion on a possible extended credit facility for Malawi.
According to Mwanamvekha, Malawi’s economy is projected to grow by 6 % this financial year despite a global growth of 3 percent and South Africa’s less than 2 percent growth.