By: Happy Arnold Soko
Despite the government debt still stands at US$3billion, the International Monetary Fund (IMF) has announced that the Malawi’s Extended Credit Facility is back on its track.
The assessment by IMF country representative Godfrey Ostreicher has come amid poverty, high inflation and kwacha fall.
Addressing the media on Wednesday in Lilongwe, Minister of Finance and Economic Planning Goodall Gondwe said Extended Credit Facility has been brought on track due to good management of domestic finance since September 2015.
He said this follows the government effort to bring the program back on needed direction.
Said Gondwe, “the momentum will be maintained especially on domestic borrowing. The government will keep on reporting on arrear as usual.”
While in his remarks, Ostreicher assured the government to get all the required assistance.
During the 5th and 6th assessment, Malawi was regarded as off IMF track due to government heavy borrowing. As of 20 June, 2015, the country’s debt was hovering around K78 billion and was brought down to K8.4 billion despite IMF approved to borrow up to K58 billion.
The IMF further stopped assisting Malawi due to economic mismanagement of resources and plunder of over K80 billion public resources.
In its last visit, IMF advised Malawi to improve on bank reconciliation, payroll audit and public finance management.