(Reuters) – The Worldwide Financial Fund mentioned on Thursday it had concluded a staff visit to Malawi the place it held constructive discussions with authorities on the economic system and coverage priorities, though no deal was reached on new lending.
“Discussions will proceed on the bundle of insurance policies and reforms that might be supported beneath an Prolonged Credit score Facility (ECF) association,” the Fund mentioned in an announcement.
An IMF staff mission visited Malawi from June 9 to 18 for talks on a new association geared toward serving to the nation get well from a extreme financial disaster characterised by double-digit inflation and crippling foreign-currency shortages.
The discussions have been anticipated to focus on fiscal self-discipline, debt sustainability and overseas trade administration, amongst different issues.
Malawi’s final IMF programme lapsed in Might final yr as a result of it didn’t full a assessment inside 18 months of its approval, which means it acquired solely an preliminary disbursement of $35 million.
The Southern African nation’s financial difficulties embody a excessive debt burden and declining donor funding.
Finance Minister Joseph Mwanamvekha mentioned in February that public debt had reached unsustainable ranges above 90% of gross home product.
