• November 29, 2022 6:17 pm

Minister Gwengwe says media should desist from sensetional reporting on  ECF program

Sep 14, 2022

Malawi Minister of Finance Sosten Alfred Gwengwe on Tuesday appealed to Malawi media to report accurately on issues boardering on International Monetary Fund (IMF) Extended Credit Facility (ECFprogram.

Speaking during an exclusive interview in Lilongwe, Gwengwe said there is need for journalists to exercise professionalism and and not being sensetional to avoid bringing confusion between the two parties.

Gwengwe gave the example of what was published in the Times Newspaper which alleged that IMF has stopped the discussion on the ECF.

“The discussions are still on going and most of the issues which IMF demanded has been sorted out and what is remaining now is credit sustainability which is also being worked on,” he said.

Gwengwe hinted that the country can still access the International Monetary Fund (IMF) Extended Credit Facility (ECF) program saying the discussions towards attainment of the completion agreement levels  might be achieved and are still under going.

Gwengwe said the IMF Mission  was supposed to be in the country this week but has been rescheduled to new dates.

“Our negotiations are on-going and most of the program structure and components have been agreed by the two parties. However one key requirement within the IMF program framework that is being unresolved is the country’s debt sustainability issues.

“It is being classified as being unsustainable due to our limited capacity to service the curent level of debt. As a country we are therefore asked by the IMF to restructure our debt to sustainable leveis to within the IMF occeptable thresholds through debt treatment or debt restructuring,” said Gwengwe.

He said substantial progress has been made nonetheless Malawi has engaged credit consultants to restructure the debts to sustainable levels and development partners for non-dept creating instruments that could help close the financing gap and at the same time injecting some liquidity in the economy.

Gwengwe said Government  will continue to work closely with key stake holders such as creditors, the development partners and the IMF for a balanced progressive solution.

Gwengwe thanked Malawians for being patient enough since Malawi has been in these discussions for over a year now and it is in the interest of everybody on the discussion table to see to it that these talks are concluded as quickly as possible.

Gwengwe said the process is hectic and too involving which requires special involvement with creditors to achieve a level of debt sustainabilty that would be acceptable to the IMF.

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