• Mon. May 29th, 2023

IMF programme key to unlock Malawi’s economic stability

May 20, 2022

By Senior Reporter

Minister of Finance Sosten Gwengwe says International Monetary Fund (IMF) programme is vital towards bringing back stability in macro and micro finance amid global financial and economic crisis.

Sosten Alfred Gwengwe : Minister of Finance

Gwengwe said President Lazarus McCarthy Chakwera administration has turned to IMF programme as one of the key ways of getting the economy back on track.

Gwengwe while announcing return of IMF team to Malawi said Government is expected to lay down Monetary reforms agenda.

Speaking at a press conference in Lilongwe which was conducted jointly with Reserve Bank of Malawi , Gwengwe said: “IMF is coming to Malawi for the negotiation on whether our reforms agenda are viable or not.”

Gwengwe said Government is optimistic now that the reforms agenda will pass through the IMF requirements and that the country is ready to receive advise from them on areas of improvement.

“It is a two part mission. First is every other issue and second is the issue of debt sustainability. Debt is the elephant in the room.

“Our problem is not debt stock (less than 60% of GDP compares exceptionally well with the region and the continent) but we run a high debt servicing risk. We have procured a Debt Advisor by the name Global Sovereign Advisory with assistance from the EU to help us navigate through the Debt Sustainability
Analysis that has been the center of the IMF latest Article lV consultation report for us,” he said.

The Finance Minister said for the past few months, two parties have intensified discussions with the Mission team in Washington DC. He said this mission coming next week is an indication that there is some progress being made.

Gwengwe said the good news is that President Dr Lazarus McCarthy Chakwera has had talks with the funds Managing Director Kristerine Georgiva three times.

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