Malawi: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Malawi
IMF Staff Country Reports, October 21, 2020
Source details
- Canonical URL
- Malawi: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Malawi
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Bibliographic details
- Published: October 21, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513559612.002
Political and public health context
- Presidential elections in June 2020, a re-run of the canceled 2019 elections, resulted in a change of government, with President Chakwera securing 59 percent of the vote.
- The new administration is facing a rapid acceleration of COVID-19 cases in Malawi.
- Adverse spillovers from continued deterioration of the global and regional economic situation have significantly worsened the macroeconomic outlook.
Balance of payments and financing gap
- An additional urgent balance of payments need of 2.9 percent of GDP has arisen.
- This brings the total external financing gap in 2020 to 5.0 percent of GDP.
IMF support request and RCF disbursement details
- The authorities have requested an additional disbursement of 52.1 percent of quota (SDR 72.31 million) under the “exogenous shock” window of the Rapid Credit Facility (RCF).
- Under this request, 30 percent of the disbursement would finance the government budget.
- This request follows the May 1, 2020 Board approval of a 47.9 percent of quota RCF disbursement (without budget support).
Program status and medium-term intentions
- The authorities have cancelled the Extended Credit Facility (ECF).
- The authorities expressed a strong interest in discussing a new ECF—better aligned with their new long-term growth and reform strategy—once conditions permit.
Key subjects and themes covered
- Asset and liability management
- Budget planning and preparation
- COVID-19
- Debt relief
- Health
- Public debt
- Public financial management (PFM)
- Rapid Credit Facility
- Revenue administration
Content in this bundle
- 1mwiea2020002