Chakwera meets IMF team, optimistic on ECF

President Lazarus Chakwera on Saturday met the International Monetary Fund (IMF) mission which is in the country to conduct the first review of Malawi’s candidacy for the Extended Credit Facility (ECF).

Both the State House and IMF country office have confirmed.

In a written response, presidential press secretary Anthony Kasunda said the team briefed Chakwera on the success of the first review and that the second and final review will be conducted in June before the results are presented to the IMF Executive Board for its consideration.

He said: “Top on the issues the team will consider during its next review is the progress the country has made in restructuring the debt which it inherited from the previous administration to make it more sustainable.

“In this regard, the President was advised to engage Malawi’s lenders on its repayment plan, especially Afrexim Bank and the Chinese Government.”

Kasunda said the President assured the IMF team that he will take advantage of the Afrexim Bank’s 30th Annual Meeting in Accra, Ghana in mid-June to personally engage the bank on Malawi’s repayment plan.

On the debt with China, he said Chakwera also assured the IMF mission that he will engage the Chinese Government, which has invited him to the China-Africa Expo at the end of June, adding the President is optimistic that the country will secure the ECF with the IMF this year.

IMF resident representative Farai Gwenhamo said the team was led by IMF mission chief for Malawi Mika Saito.

She said: “The purpose of the mission from May 16 to 22 is to hold discussions for the first review of Malawi’s staff monitored programe with executive board involvement approved by IMF management in November 2022 to help the authorities build a track record towards the Extended Credit Facility which would help to catalyse grants.”

On November 21 2022, the IMF board of directors approved a disbursement of $88.3 million (about K91 billion) through a Rapid Credit Facility initialised through the Food Shock Window.

The emergency financing was aimed at helping Malawi address the urgent balance of payment and fiscal needs related to the global food crisis.

Last year, between May 25 to June 3, the IMF mission led by Saito held discussions with Malawi Government officials and the fund raised two important issues that government needed to address such as managing debt and resolving issues of misreporting of figures.