-
Malawi
is the first low-income country to reach a staff-level agreement to
receive up to about US$88.3 million (50 percent of Malawi’s IMF quota)
in emergency financing through the IMF’s new
Food Shock Window
under the
Rapid Credit Facility
. Malawi has also requested
Program Monitoring with Board involvement
.
- This emergency financing under the new Food Shock Window will help Malawi
address urgent balance of payments needs related to the global food crisis.
Program Monitoring with Board involvement will support the government’s
economic reforms to restore macroeconomic stability and provide the
foundation for an inclusive recovery.
- Malawi’s request will be discussed by the IMF’s Executive Board as soon
as possible. Malawi is implementing a comprehensive debt restructuring
needed to restore debt sustainability. A credible process for the debt
restructuring would need to be underway prior to the IMF Executive Board’s
consideration.
Washington DC:
An International Monetary Fund (IMF) team led by Mika Saito held
discussions with the Malawian authorities during October 11-17, 2022, in
Washington DC, following meetings in Lilongwe during October 5-8, 2022, on
Malawi’s request for emergency financing under the IMF Rapid Credit
Facility’s new Food Shock Window and for Program Monitoring with Board
involvement.
The authorities have initiated a comprehensive debt restructuring process
to restore debt sustainability and build a track record with the Program
Monitoring with Board Involvement towards an IMF-supported economic program
financed under the
Extended Credit Facility
.
At the conclusion of these discussions, Ms. Saito issued the following
statement:
“The IMF team reached a staff-level agreement with Malawi on a Rapid Credit
Facility through the IMF’s new Food Shock Window and Program Monitoring
with Board involvement (PMB) to help restore macroeconomic stability and
provide the foundation for an inclusive economic recovery. The disbursement
under the Food Shock Window, of up to about US$88.3 million (50 percent of
IMF quota), combined with the PMB, will help address Malawi’s urgent
balance of payments needs related to the global food crisis and will
support economic adjustment and structural reforms.
“IMF staff are now preparing to present to the IMF’s Executive Board for
approval the authorities’ request for emergency financing through the IMF’s
Food Shock Window and for Program Monitoring with Board involvement as soon
as possible.
“To complement their strong reform program, the authorities are
implementing a comprehensive debt restructuring needed to restore debt
sustainability. A credible process for the debt restructuring needs to be
underway prior to the IMF Executive Board’s consideration of Malawi’s
request.
“The authorities are strongly committed to continuing their efforts to
implement structural reforms and prudent macroeconomic—fiscal, monetary and
exchange rate—policies, which, together with the ongoing debt restructuring
process, will steer the country towards macroeconomic stability and a
sustainable debt path. In turn, this will help to set the foundation for
inclusive growth and improve the life of Malawians.
“The IMF mission held meetings with Minister of Finance and Economic
Affairs Sosten Gwengwe, Reserve Bank of Malawi Governor Wilson Banda, and
senior government and Reserve Bank of Malawi officials. The mission team
thanks the Malawian authorities for the engaging and productive
discussions.”