Malawians should brace for hard economic times in the next few months based on the likelihood that the country may not meet the commitments necessary to receive a second tranche of the Extended Credit Facility program with the International Monetary Fund unless Malawi takes additional measures.
This was revealed in an interview journalists had with United States Treasury Deputy Assistant Secretary Eric Meyer on Friday 23rd August, 2024 in Lilongwe Malawi.
Meyer who was on three-day trip to Malawi and was accompanied by United States Embassy’s Chargé d’Affaires Amy Diaz, has had meetings with vice president of Malawi, Malawi President’s Economic Advisor, Ministry of Finance officials, Reserve Bank Governor and IMF and World Bank Officials
The Deputy Assistant Secretary Eric Meyer has said that low revenue collection, balloning expenditures, and delayed full implementation of the integrated Financial Management Information System (IFMIS) have put Malawi at risk of staying on track with the IMF.
Meyer further added that there have been delays in reaching agreement on reaching necessary debt restructuring with some of Malawi’s International creditors which have been further complicated by deals that Malawi is pursuing with some investors that could undermine Malawi’s agreements with the IMF and bilateral creditors.
Lastly, Meyer called for “urgent leadership and action at all levels of rhe governments to ensure that Malawi stays oncourse with the Extended Credit Facility, implements the reforms it has committed to on order to stabilize it’s economy, and builds the foundation for economic growth and the long-term benefit of all its citizens.
