By Linda Kwanjana
The United Kingdom Government has hailed President Dr Lazarus McCarthy Chakwera for working hard round the clock to have the International Monetary Fund Extended Credit Facility (ECF) clinched.
In a statement, the UK Government says it welcomes the decision by the IMF Board and congratulates the Government of Malawi on the approval of the $174m Extended Credit Facility (ECF).
“This agreement marks the culmination of dedicated efforts by Malawian authorities to restructure Malawi’s unsustainable external debt, to design and implement a sustainable budget, and to improve the use of public funds through tighter scrutiny and control,” reads the statement.
In the statement, the UK believes that these reforms and the new financing agreed
under the ECF will help to stabilise Malawi’s economy and create the building blocks for investment and growth.
“To achieve this significant milestone, the Government of Malawi has had to take necessary but difficult policy
decisions, and to implement austerity measures in the short-term in the pursuit of future growth and stability. As a
long-term and committed partner of Malawi, the UK will support the Government’s efforts to protect vulnerable
people during this difficult time,” reads the statement,” says the statement.
The UK says is acutely aware of the hardships that Malawians are facing over this period of economic adjustment.
“To help with this, over the coming months we will be prioritising additional support for families who don’t have enough to eat, including through providing cash and food. There can be no doubt that for the longer-
term growth and prosperity that is needed to prevent future hardship, Malawi needs a vibrant private sector and a
more diverse economy that can create more jobs,” it adds.
The UK has since pledged to work in partnership with Malawi to support this goal.