IMF extends loan to Malawi under the Extended Credit Facility

The International Monetary Fund (IMF) has approved an extension of Malawi’s arrangement under the Extended Credit Facility (ECF) to June 30, 2016.
Through this arrangement IMF will give Malawi a loan of money amounting to US$146.7 million.

This has been disclosed in a press statement released by IMF communications department made available to FaceofMalawi.

According to the statement, the development has been approved IMF Executive Board.

“The Executive Board of the International Monetary Fund (IMF) approved on May 16, 2016—without an Executive Board meeting—an extension of Malawi’s arrangement under the Extended Credit Facility (ECF) to June 30, 2016. This extension will provide additional time for the authorities to implement structural measures under the program.

“The ECF arrangement for Malawi was approved on July 23, 2012 (see Press Release No. 12/273) in an amount equivalent to SDR 104.1 million (about US$ 146.7 million). The program is aimed at the achievement and maintenance of macroeconomic stability and implementation of policies and structural reforms to spur growth, diversify the economy and reduce poverty,” reads in part the statement.

Last year IMF, suspended ECF programme saying it was off truck due to over expenditure and the plunder of public funds in government ministers.

After reviewing it for the second time earlier this year, IMF board reversed its decision after the government of Malawi showed some commitment in improving the system.