Gwengwe explained that the funds will help the country in replenishing the country’s forex reserve
By Cedric Nkungula
Renowned economic expert Dr. Betchani Tchereni says International Monetory Fund’s (IMF’s) disbursement of US$88.3 billion to Malawi is a lifeline to the country.
IMF Board meeting on Monday 21st November, 2022 approved US$88.3 million under the Rapid Credit Facility (RCF).
Minister of Finance, Sosten Gwengwe confirmed the development saying the money will be disbursed to Malawi with immediate effect.
Gwengwe explained that the funds will help the country in replenishing the country’s forex reserve.
Writing on his Facebook page soon after the news broke out, Tchereni said Malawi really needed the credit windfall.
“It’s a credit facility, yes. It is a lifeline too. We needed this,” Tchereni said.
He however advised the authorities to put the money to good use.
“US$88 million must be put to good use, strategic commodities only please. No portion of this money should be used in luxurious purchases, whether by public or private sector,” he said.
Last month, Malawi became the first low income country to reach a staff level agreement to receive the amount under the IMF’s new Food Shock Window.
The disbursement of the money is expected to address Malawi’s urgent balance of payment needs.
This is good news to the Chakwera led administration which is working around the clock to bring back to life the country’s economy which was left in tatters by the erstwhile Democratic Progressive Party (DPP) administration.