IMF IN FRESH TALKS WITH MALAWI ON ECONOMIC RECOVERY PLANS
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The International Monetary Fund (IMF) has confirmed that it has held fresh discussions with the Government of Malawi aimed at exploring ways to rebuild the country’s fragile economy and restore financial stability.
Finance Minister Joseph Mwanamveka, together with a delegation of top government and Reserve Bank of Malawi officials, was in Washington DC, United States, where they met various international financial institutions, including the World Bank and the IMF.
According to Reuters, an IMF spokesperson revealed that the meeting focused on Malawi’s interest in rejoining the IMF’s Extended Credit Facility (ECF) a key economic reform programme that was previously suspended following policy and governance challenges.
“The Fund continues to engage with Malawi authorities on policy priorities that would help the country achieve macroeconomic stability and inclusive growth,”
IMF Spokesperson
The spokesperson added that the IMF remains committed to supporting Malawi in developing sound macroeconomic policies that can help stabilise inflation, strengthen the kwacha and promote sustainable debt management.
Currently, Malawi does not have an active economic support programme with the IMF, after the government terminated the earlier deal citing the need to review certain fiscal measures.
However with the cost of living still rising, fuel shortages hitting hard, and the local currency under pressure, analysts believe a renewed partnership with the IMF could open the door to much-needed financial support and restore investor confidence.
Meanwhile, the Ministry of Finance says the discussions were productive, noting that government is determined to rebuild international trust and work towards long-term economic recovery.
Economic expert Henry Kachaje has since described the talks as “a positive step” but cautioned that Malawi must demonstrate fiscal discipline, transparency, and policy consistency to regain the IMF’s full confidence.
If the negotiations succeed, Malawi could soon access fresh concessional loans and technical assistance from the IMF, boosting the country’s efforts to stabilise the economy and improve public service delivery.
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