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Malawi: Second Review Under the Staff-Monitored Program with Executive Board Involvement and Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report
Author:
International Monetary Fund. African Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2023: Issue 375
Language:
English
Publication Date:
22 Nov 2023
DOI:
https://doi.org/10.5089/9798400259302.002
ISBN:
9798400259302
ISSN:
1934-7685
Pages:
141
Keywords:
authorized dealer banks; ECF arrangement; staff appraisal; executive board involvement; financing gap; Debt service; International reserves; Global; Africa; Sub-Saharan Africa
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This paper discusses Malawi’s Second Review under the Staff-Monitored Program with Executive Board Involvement (PMB) and Request for an Arrangement under the Extended Credit Facility (ECF). Malawi continues to face a challenging macroeconomic environment. Years of unsustainable domestic and external borrowing and the adverse impact of multiple external shocks have resulted in the widening of macroeconomic imbalances, including protracted balance of payment needs. The ECF-supported program will support the authorities’ macroeconomic adjustment and reform agenda aimed at restoring macroeconomic stability, building a foundation for inclusive and sustainable growth, and addressing weaknesses in governance. Further delays in the restructuring of Malawi’s external debt would put at risk macroeconomic stabilization. The risks of moving forward with the ECF arrangement without an agreement in principle between the Malawian authorities and their commercial creditors are significant. IMF staff assesses that the PMB remains on track to achieve its objectives. It supports the authorities’ request for the ECF arrangement, conditional upon receipt of financing assurances.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund