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IMF says Malawi requests four-year credit facility

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The Worldwide Financial Fund (IMF) brand is seen exterior the headquarters constructing in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Picture

BLANTYRE, June 6 (Reuters) – Malawi has requested a four-year prolonged credit score facility to assist with steadiness of funds difficulties, the Worldwide Financial Fund (IMF) mentioned on Monday.

The donor-dependent southern African nation has been experiencing acute international forex shortages. Late final month it allowed its kwacha forex to weaken 25% towards the greenback. Learn full story

“The authorities have requested an association (on) the again of the protracted steadiness of funds drawback,” the IMF mentioned in a press release after talks with Malawian authorities officers and personal sector representatives.

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The fund mentioned restoring debt sustainability and resolving a case involving alleged misreporting of foreign-exchange reserves have been pre-requisites for IMF assist.

“Whereas the authorities are addressing these points, the IMF group performed a mission to agree on (a) macroeconomic framework, insurance policies and reforms,” it added.

The IMF mentioned it welcomed the transfer to normalise the foreign exchange market and that Malawi’s authorities had engaged a debt advisor to suport efforts to handle unsustainable public debt.

(Writing by Alexander WinningEditing by James Macharia Chege)

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