The International Monetary Fund (IMF) has said the fund’s managing director Kristalina Georgieva discussed strategies to boost Malawi’s growth with President Lazarus Chakwera.
IMF Director of the Communications Department Julie Kozack was responding to questions on the rationale of Georgieva’s meeting with Chakwera as well as Sierra Leone President Julius Maada Wonie Bio.
During a regular press briefing last week, Kozack was asked to provide information on the meetings and if any new requests were made by the two heads of states.
According to Kozack, Chakwera and Georgieva discussed Malawi’s macroeconomic policies and reforms that are envisaged under Malawi’s Extended Credit Facility (ECF) arrangement.
“They also discussed strategies to boost growth in the country and also included progress on Malawi’s debt restructuring strategy.
“The managing director reaffirmed the IMF’s commitment to supporting Malawi in its economic stabilisation efforts,” Kozack said.
The meeting between Chakwera and Georgieva came at a time when there has been some deafening silence around the four-year programme since May 23 when an IMF team concluded its mission to Malawi.
Malawi owes its creditors about $1.2 billion and a huge chunk of the public debt was inherited from past previous regimes including an estimated $800 million from Afreximbank, accrued by the previous government.
Chakwera told Georgieva that, as things stand, Malawi has already reached official agreements on the specific restructuring terms with some of our major bilateral creditors, including China and India.
He observed that the new terms have been formalised to translate into direct budgetary savings, while also supporting the government’s fiscal trajectory.
“Discussions with India are also currently ongoing, with the objective of reaching agreements in line with the IMF programme requirements within the coming weeks.
“Important progress was made during our delegation to New Delhi last month and both sides committed to continue to work closely together to ensure that this process is brought to a fruitful conclusion,” he explained.
On debt restructuring negotiations with Afreximbank, Chakwera said discussions are being done in good faith, adding that Malawi officials have also made progress in their discussion with the Trade and Development Bank.
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