Wednesday, 6 June 2012

Malawi to receive US$157 million from the IMF

The International Monetary Fund (IMF) and Malawi has come out to say  they had agreed to a 3-year, $157 million package to support the southern African country's troubled economy.

"We hope that this will encourage Malawi's donors, who have already pledged that they will support the 2012/13 budget, to quickly release their funds and make the country's international reserves sustainable," IMF mission chief Tsidi Tsikata told a news conference.

According to Reuters  the IMF will cancel a $79.4 million facility approved in 2010 that was suspended due to problems with Mutharika, who scoffed at the fund's recommendations to devalue the kwacha currency, reform the finance sector and increase transparency

Tsikata said the new extended credit facility should improve the balance of payments and restore donor confidence.

Malawi's relationship with international donors went sour when late president Bingu wa Mutharika, told donors that  Malawi did not need their support .

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