By Chisomo Phiri
The International Monetary Fund (IMF) Deputy Managing Director Gita Gopinath has applauded President Dr. Lazarus Chakwera for the tough decisions taken to strengthen the Malawi’s economy.
Gopinath told journalists at Kamuzu Palace in Lilongwe after meeting Chakwera on Tuesday that the Fund is beginning to see progress and results from the decisions that Chakwera has made.
“I want to thank President Lazarus Chakwera, as well as the Minister of Finance and Economic Affairs, Mr. Sosten Gwengwe, and the Governor of the Reserve Bank, Dr. Wilson Banda for the productive exchange of views and warm hospitality, “said Gopinath.
She said the reform momentum must continue and that this will form part of the discussion that the IMF team will have with Malawi next week.
Gopinath said the IMF staff and management are fully committed to supporting Malawi during the transformation.
“We discussed the economic and developmental prospects for Malawi.
“I commended the authorities’ efforts under the Staff-Monitored Program with Executive Board Involvement (PMB) to restore macroeconomic stability, which will set the stage for stronger durable growth and poverty reduction. Macroeconomic adjustment and reforms are gaining traction and it would be important to maintain the momentum in the period ahead.
“We also discussed the policies that would be necessary to solidify the country’s hard-won gains. Securing a debt treatment would be vital for macroeconomic stability and ensure that additional financing could be used to address Malawi’s pressing developmental challenges. Moreover, strengthening fiscal discipline and addressing weaknesses in governance remain essential”, she said.
She added :“The close engagement between Malawi’s economic team and IMF staff in the context of the second review of the PMB is welcome, as is the authorities’ request for an arrangement under the Extended Credit Facility. IMF staff and management will continue to offer their strong support to the authorities’ efforts to stabilize the economy.”
On his part, President Chakwera said :”We appreciate the trust IMF has placed in our administration based on the tough and bold decisions we have taken to resuscitate the economy.
“The multilateral development bank has assured us of its commitment to help us find solutions to current economic challenges and attainment of satisfactory credit sustainability.
Chakwera said he has assured the IMF team that his administration remains determined and focused to grow the economy and build sustainable communities in line with the Malawi Vision 2063 agenda.
He said he remains hopeful that the discussions the IMF mission is undertaking with the Reserve Bank of Malawi (RBM) and the Ministry of Finance will progress into clarity of a new Extended Credit Facility.
Currently, Malawi which is under the Staff Monitored Programme with Executive Board Involvement (PMB) that was approved in November 2022, is hoping to graduate to an upper credit tranche before the end of the year.
 Deputy Managing Director Gita Gopinath has applauded President Dr. Lazarus Chakwera for the tough decisions taken to strengthen the Malawi’s economy. Gopinath…){kind=link}