Malawi has requested a
four-year extended credit facility to help with balance of payments
difficulties, the International Monetary Fund (IMF) said on Monday.
The donor-dependent southern African country has been experiencing acute
foreign currency shortages. Late last month it allowed its kwacha currency to
weaken 25% against the dollar.
"The authorities have requested an arrangement (on) the back of the
protracted balance of payments problem," the IMF said in a statement after
talks with Malawian government officials and private sector representatives.
The fund said restoring debt sustainability and resolving a case involving
alleged misreporting of foreign-exchange reserves were pre-requisites for IMF
support.
"While the authorities are addressing these issues, the IMF team conducted
a mission to agree on (a) macroeconomic framework, policies and reforms,"
it added.
The IMF said it welcomed the move to normalise the forex market and that
Malawi's authorities had engaged a debt advisor to suport efforts to address
unsustainable public debt.
Source: REUTERS