IMF deputy chief meets Chakwera today
International Monetary Fund (IMF) first deputy managing director Gita Gopinath will today meet President Lazarus Chakwera as part of her two-nation tour to “discuss economic prospects and how the international community can best support both countries”.
In an announcement posted on IMF Africa Facebook page last week, the fund said she would travel to Malawi and South Africa.
Gopinath is coming to Malawi for the meeting with Chakwera at Kamuzu Palace in Lilongwe from South Africa where she delivered a keynote speech at the South Africa Reserve Bank’s biennial conference.
Her visit comes days before an IMF mission visits Malawi mid this month for discussions with Malawi Government authorities on the second review of Staff Monitored Programme with Executive Board Involvement (PMB).
The IMF Mission will be in the country from September 12 to 19 to assess Malawi’s progress in its drive to establish a track record for an Extended Credit Facility (ECF) and possibly move ahead with programme discussions.
Meanwhile, presidential press secretary Anthony Kasunda said in a statement last evening that Gopinath will use the visit to “appreciate firsthand the challenges facing the economy” in the aftermath of recent economic shocks, including Cyclone Freddy.
Reads the statement: “She will also hold discussions with officials from the Ministry of Finance and Economic Affairs and the Reserve Bank of Malawi on the Extended Credit Facility Programme Malawi is moving towards.”
ECF provides medium-term financial assistance to low-income countries with protracted balance of payment problems. It is one of the facilities under the Poverty Reduction and Growth Trust. On July 28 2023, the IMF Mission visited Malawi to conduct the first review of the country’s performance towards qualifying for the ECF and said the country was on track under the Staff Monitored Programme. However, there were concerns on other key indicators such as public expenditure and rising public debt.
