By Linda Kwanjana
The government through the Ministry of Finance have mutually resolved to allow the Extended Credit Facility Program to lapse until further notice.
In a press statement the ministry has issued, Secretary for Treasury Betchani Tchereni says this follows the Government’s recent discussion with the International Monetary Fund (IMF) during the recent Spring meetings in Washington DC.
According to the statement, the ECF that was approved on 14th November, 2023 was aimed at restoring macroeconomic stability, a thing that has faced a number of exogenous shocks which made it difficult for the side of supply side to assist both increased revenue and enhanced production.
“This resolution allows the political environment necessary for the progression of the ECF program to normalize as is expected after the elections in September 2025,” reads part of the statement.
The statement also said this move will allow the Government to leverage its fresh electroal mandate in negotiating a more sustainable ECF package for the country to gain macroeconomic stability going forward.
The statement further said that as Government it remains confident that post-election, the partnership with the IMF will continue the progress made so far in restoring international donor confidence in Malawi’s committiment to the macroeconomic reforms necessary for staying on the path of recovery and debt sustainability.
The statement adds that IMF will send a mission end May 2025 to make consultations and monitoring for Malawi’s economic main stays in preparation for a tailor made Malawi Programme in the future and the Ministry assures the public that during this period where ECF program will be in the state of suspension, the economic reforms protocols established to exercise fiscal discipline will continue in force
