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Malawi Secures $112.3m Loan from IMF

The International Monetary Fund (IMF) has reached an agreement with Malawi on a new three-year $112.3 million loan arrangement for the Southern African country.

The credit facility is to assist the country’s economic and financial reforms, as well as entrench macroeconomic stability, spur growth and reduce poverty, the Fund said in a statement on Monday.

According to the statement, the deal would enable the immediate disbursement of about $16 million, with the remaining amount to be phased over the duration of the programme, subject to semi-annual reviews.

“Malawi has shown progress in achieving macroeconomic stabilisation following two years of drought, with a rebound in growth and inflation reduced to single digits,” IMF Deputy Managing Director, Tao Zhang said in the statement.

“However, the fiscal position has deteriorated and the public debt to GDP ratio has risen. Increased debt service pressures have reduced space for needed infrastructure and social spending,” he added.
culled from footprint on Africa