The Leader of the Opposition, Dr. George Chaponda, has told the visiting International Monetary Fund (IMF) delegation that the government’s failure to address fiscal discipline has resulted in the cancellation of the Extended Credit Facility (ECF).

Dr. Chaponda made the sentiments at a consultation meeting which the IMF mission is holding with different stakeholders in the country.

He accused the government of overspending the public purse, which he says led to the suspension of the $175 million four-year facility.

"I told them that we disagree with what the government said, that the IMF is an unnecessary evil. We feel that the IMF is a very important partner, and we are disappointed that the Extended Credit Facility was discontinued."

"This was all about the failure by the government to uphold financial discipline. They are there distributing money unnecessarily," said Dr. Chaponda.

The International Monetary Fund (IMF) delegation continues to meet different stakeholders as part of Malawi’s economic assessment and surveillance as part of fulfilling Article IV of the IMF's Articles of Agreement grants.

The IMF holds regular consultations with member countries annually to discuss policies with officials.

Dr. Chaponda told the delegation that he lost faith in the current regime.

He accused the government of overspending the public purse, which he agrees with in an assessment by the IMF – which led to the suspension of the 175 million US dollar four-year facility.

"The cornerstone of development in a country depends on a solid relationship that you have with the IMF. The World Bank and other development partners would have confidence in this country," added Dr. Chaponda.

Secretary to the Treasury, Dr. Betchani Tchereni, recently said Malawi and the Bretton Woods institution mutually resolved to suspend the programme after a year of non-disbursement and would resume the talks after the September 16 polls, as Malawi could not afford to implement some of the measures which the facility demanded.

“The ECF focused on stabilisation when Malawians needed jobs, food and medicine. Now that it has lapsed, we can explore an expansionary stance focused on industrialisation, mega farming, and mining.” Tchereni told the media.

Economic experts agree that Malawi needs the loan to instill donor confidence and position itself as a country ready to absorb foreign direct investment, but the measures are stringent.

President Lazarus Chakwera said he allowed the programme to lapse because his government needs to spend on recruiting teachers, health workers and security personnel.

After the visit, the IMF staff will prepare a report that will be assessed by the IMF's Executive Board for recommendations, among others.