The International Monetary Fund (IMF) held productive talks with Malawi’s new government during its annual meetings in Washington this month, a spokesperson said on Monday (27 October), according to Reuters, as the country seeks to secure a new financing program.
“We look forward to continuing discussions on the authorities’ plans to restore macroeconomic stability and on how the IMF can best support their reform efforts,” the spokesperson said.
Malawi’s last IMF program ended in May after it failed to restore macroeconomic stability. At the time, the fund noted that the program had not succeeded in stabilizing the national finances. Inflation has risen to over 30% year-on-year, while foreign currency shortages have limited imports of essential goods such as fuel and fertilizers.
“Fiscal discipline proved difficult to maintain in the current environment due to high spending pressures and insufficient revenue mobilization efforts,” the IMF stated. The government, through the Ministry of Finance, said it would seek to negotiate a new IMF program following the September national elections.
President Peter Mutharika took office earlier this month after five years of worsening economic crisis in one of the world’s poorest countries.
Source: Diário Económico
