Malawi’s President Dr Lazarus McCarthy Chakwera is still hopeful that his landlocked country will secure an Extended Credit Facility (ECF) from the International Monetary Fund (IMF). The ECF is dependent upon the country meeting some requirements.
At an AFREXIMBank meeting in Accra, Ghana, last week, Chakwera pleaded with the bank to consider a debt-restructuring plan for money it owes it so that Malawi can secure the ECF.
His plea follows an announcement by the IMF that the next assessment for its readiness for the ECF is due at the end of June.
Malawi is believed to owe AFREXIMBank and Trade and Development Bank (TDB) some $850 million, which the IMF wants to be squared before committing to the ECF.
President Chakwera said an ECF would help to restore Malawi’s repayment capacity by rebuilding reserves and reducing the macroeconomic imbalances the country is suffering from.
“Our regular engagement over the past few months was, therefore, in pursuit of a debt restructuring mechanism that would allow us to fully restore debt sustainability and unlock an ECF for Malawi that would eventually yield dividends for both Malawi and the bank,” Chakwera told journalists.
AFRIMEXIMBank says it will stand by Malawi in its quest.