Minister of Finance Joseph Mwanamvekha has described the meeting President Peter Mutharika and economic officials had on Sunday with the International Monetary Fund officials (IMF) team as successful, saying the global lender understands the scale of Malawi’s economic challenges.
He said this on Sunday after the meeting with IMF Africa Department director Abebe Aemro Selassie at Mtunthama State Lodge in Lilongwe .
The meeting brought together Reserve Bank of Malawi Governor McDonald Mafuta-Mwale, Secretary to the Treasury Cliff Chiunda and IMF resident representative Nelnan Koumtingue and others.
Mwanamvekha said the meeting followed earlier discussions they had with IMF team in Washington, US and a recent IMF mission to Lilongwe.
“The IMF is ready to help. They know the situation we have inherited. If we get foreign exchange, our problems are sorted out because everything revolves around foreign exchange,” he said.
On his part, Mutharika appealed for urgent financial support to stabilise the economy, which is strained by fertiliser shortages, fuel disruptions, foreign exchange gaps and mounting debt in excess of K21 trillion.
He said the country’s fiscal space is increasingly overwhelmed by debt servicing obligations, leaving little room for essential imports.
Speaking after the meeting, Selassie acknowledged the severity of Malawi’s economic pressures, saying this is why he had to come to Malawi.
“The government has inherited a very difficult economy. Macroeconomic imbalances are elevated, foreign exchange shortages are significant and inflation is high. We recognise the urgency,” he said.
Selassie said IMF aims to support Malawi through policy advice, technical assistance and financing and will “move as quickly and expeditiously as possible”.
