Members of an International Monetary Fund (IMF) Mission team jetted in the country Sunday ahead of a mission scheduled to take place from Tuesday to May 22.
IMF Resident Representative Farai Gwenhamo confirmed Sunday, saying the mission will hold discussions with the authorities on the first review of Malawi’s Staff Monitored Programme with the executive board approved by the IMF management in November 2022.
According to Gwenhamo, the assessment of Malawi’s performance will be based on end-December 2022 programme targets.
Malawi is hoping to graduate to the Extended Credit Facility (ECF) programme by mid this year.
According to Gwenhamo, the role of the PMB is to help the authorities to build a track record towards an ECF.
“In addition to the mission’s discussions with the authorities, there will be engagements with other stakeholders including civil society and development partners.
“The mission discussions will be in-person in Lilongwe,” Gwenhamo said.
Finance Minister Sosten Gwengwe Sunday said authorities are ready to meet the IMF mission.
“Yes. We are prepared and are looking forward to this mission.
“Cyclone Freddy torpedoed some of our assumptions, but we remain hopeful,” Gwengwe said.
Cyclone Freddy ravaged through Malawi in mid-March as it dropped six months rainfall in six days, killing close to 700 people and displacing thousands others.
Currently over 500 other Malawians remain missing.
In November last year, the Executive Board of the IMF approved a disbursement of $88.327 million (SDR 69.40 million) under the Food Shock Window of the Rapid Credit Facility to help Malawi address urgent balance of payment needs related to the global food crisis.
Lilongwe also requested the Staff- Monitored Programme and Programme Monitoring with the IMF board involvement to build a track record of policy implementation, possibly paving the way to an IMF-supported Upper Credit Tranche-quality programme.
