Next IMF credit extension to consider Covid-19
Published on June 11, 2020 at 4:49 PM by Edgar Naitha
The International Monetary Fund (IMF) says its next review mission of the three-year Extended Credit Facility (ECF), slated for September this year, will take into account the socio-economic impact of Covid-19 pandemic on Malawi
IMF country representative for Malawi Farayi Gwenhamo told The Nation newspaper that the assessment will duly take into account the socio-economic impact of Covid-19 in Malawi which includes lower economic activity in the country than envisaged pre-Covid-19.
In February this year, the Reserve Bank of Malawi (RBM) formed a special taskforce to monitor possible impacts of Covid-19 on the country’s economy.
Last month, the RBM Board Director, Pius Mulipa, told the Presidential Taskforce on Covid-19 that after assessments, it has been found that the coronavirus pandemic will impact on inflation.
However the central bank remained positive in its goal to achieve a 5% inflation target by 2021. The confidence was attributed to an influx of maize in most traditional markets, following the harvesting season, which has contributed to a drop in prices on the market.
