Malawi on track in new IMF credit facility

Malawi is on the right track in implementing targets set in the recently approved International Monetary Fund-IMF’s-new Extended Credit Facility-ECF-despite some external shocks on the economy, a market analyst has said.

This comes a week before the coming in of an IMF mission team to review the recently recommended credit programme this month end.

Alliance Capital Limited Executive Director Mr Chikavu Nyirenda said in an interview the review meeting would reflect the Fund’s official position of the ECF performance.

“I don’t think there is anything that is substantially out of line with the IMF’s recommendations and what they expected. We devalued and floated the currency and basically we are in line with the terms and conditions set in the ECF,” he said.

The IMF mission team to be led by Chief of Mission for Africa Mr Tsidi Tsikata is expected to arrive in the country on October 30.

While here the team is also scheduled to hold a multi-stakeholder conference which will assess Malawi’s economic performance.

According to Mr Nyirenda expectation is high for a positive review from the IMF team on the current economic trends.

The first quarter of the 2012/2013 fiscal year has been characterized by numerous economic challenges in the aftermath of the devaluation and subsequent floatation of the kwacha.

These include a general rise in the prices of basic goods and high transportation costs triggered by instability of prices of petroleum products.

Under the ECF, the IMF is to provide Malawi with $157m over three years as part of its assistance towards stabilizing the country’s economy.