The International Monetary Fund (IMF) and the Malawi Government will continue discussions on a proposed Extended Credit Facility (ECF) arrangement after concluding a 10-day mission to the country without announcing a new lending agreement.
An IMF staff team led by mission chief Justin Tyson visited Lilongwe and Blantyre from June 8 to 18 to assess recent economic developments and initiate discussions on policy priorities under the National Economic Recovery Plan (Nerp) that could be supported through an ECF programme.
In a statement issued at the end of the mission, Tyson described the discussions as constructive and acknowledged recent government measures aimed at stabilising the economy.
position aligns with
that of IMF.
| Nation
“The IMF team held constructive discussions with the Malawian authorities on the economic situation and policy priorities. The team acknowledged the authorities’ recent actions to reflect global market prices, stabilise the fiscal situation, and address food security challenges,” he said.
The Fund said discussions would continue on the package of policies and reforms that could be supported under an ECF arrangement.
The proposed programme is expected to support Malawi’s efforts to restore macroeconomic stability amid persistent foreign exchange shortages, elevated inflation and a high public debt burden.
The IMF statement shows no agreement on new lending had been reached following the mission, with discussions expected to continue on reforms related to fiscal discipline, debt sustainability and foreign exchange management.
In a brief response yesterday, Ministry of Finance, Economic Planning and Decentralisation spokesperson Williams Banda said government’s position remained aligned with that of the IMF.
“Government position aligns with that of IMF,” he said.
The IMF statement said authorities reaffirmed their commitment to implementing sound and credible policies aimed at restoring and preserving macroeconomic stability while supporting inclusive and resilient growth.
During the mission, the IMF team held meetings with Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha, Reserve Bank of Malawi Governor George Partridge, Secretary to the Treasury Cliff Chiunda and other senior government officials.
The mission also engaged representatives of the private sector, banks and development partners.
Malawi is seeking a new IMF-supported programme after its previous ECF arrangement lapsed in May 2025. The programme expired after the country failed to complete a review within the required timeframe, resulting in only an initial disbursement of $35 million.
The latest discussions come at a time when Malawi is grappling with public debt estimated at more than 90 percent of gross domestic product, foreign exchange shortages and pressure on public finances, despite recent improvements in some key macroeconomic indicators.
