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Tuesday, November 22, 2022

IMF Staff Completes Mission to the Republic of Malawi for Discussions on the Request for a Four-Year Extended Credit Facility Arrangement

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The Malawian authorities and IMF employees had constructive and productive discussions on insurance policies wanted to revive macroeconomic stability, guarantee public debt sustainability, and advance structural reforms to help sustainable and inclusive progress and tackle the affect of the COVID pandemic, spillovers from battle in Ukraine and climate-related shocks; the authorities’ current choice to normalize the international alternate market to assist tackle international alternate availability is welcome. The near-completion of the audit of Reserve Financial institution of Malawi (RBM) international alternate reserves ought to pave approach for consideration by the IMF’s Government Board of the misreporting of RBM International Alternate Reserve case; the authorities have not too long ago engaged a debt advisor to help their efforts to deal with the unsustainability of Malawi’s public debt. As work progresses on this course of, IMF employees will likely be reengaging the authorities in direction of a staff-level settlement.

An Worldwide Financial Fund (IMF) workforce led by Mika Saito held discussions throughout Could 25-June 3, 2022, by way of hybrid and in-person conferences in Lilongwe on the authorities’ Request for a 4-Yr Prolonged Credit score Facility (ECF) Association.

The authorities have requested an association at the back of the protracted steadiness of funds drawback. Whereas IMF help and its catalytic position in mobilizing donor help are vital at this juncture, with the ability to restore debt sustainability and resolving the misreporting case are pre-requisites for such help. Whereas the authorities are addressing these points, the IMF workforce performed a mission to agree on macroeconomic framework, insurance policies, and reforms.

On the conclusion of those discussions, Ms. Saito issued the next assertion:

“We had constructive and productive discussions with the authorities on the present macroeconomic situations and insurance policies to steer the nation in direction of macroeconomic stability and a sustainable debt path.

“We welcome the authorities’ current steps to normalize the foreign exchange market in step with the suggestions of Article IV Session concluded by the IMF Government Board in December 2021 to assist to enhance international alternate availability.

“The particular audit of the official international alternate reserves of the Reserve Financial institution of Malawi (RBM) is now within the last phases. This report will kind the premise for consideration of the pending misreporting of RBM International Alternate Reserves by the Government Board of the IMF.

“The authorities have engaged a debt advisor to help their efforts in addressing Malawi’s unsustainable public debt. As this work progresses, the discussions with the authorities will resume in direction of a staff-level settlement.

“The IMF employees held conferences with Minister of Finance and Financial Affairs Sosten Gwengwe, Reserve Financial institution of Malawi Governor Wilson Banda, and senior authorities and Reserve Financial institution of Malawi officers, and the personal sector. The mission workforce thanks the Malawian authorities for his or her hospitality and productive discussions.”

Distributed by APO Group on behalf of Worldwide Financial Fund (IMF).

This Press Launch has been issued by APO. The content material just isn’t monitored by the editorial workforce of African Enterprise and never of the content material has been checked or validated by our editorial groups, proof readers or truth checkers. The issuer is solely accountable for the content material of this announcement.

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