Seek concessional support, IMF urges
The International Monetary Fund (IMF) has tipped the government to seek concessional donor support to close external financing gaps and ease possible economic and social impacts of Covid-19.
This is contained in a statement issued by the Bretton Woods institution on Friday where the Fund announced approval of a $91 million loan to help fund a balance of payments deficit aggravated by the pandemic.
The IMF has further urged local authorities to conduct proper audits of Covid-19 related spending.
This is coming at a time the government has been heavily borrowing domestically in funding budget deficits.
“Additional concessional donor support will be critical to close the remaining external financing gap and facilitate the needed interventions to ease the economic and social impacts of the pandemic while preserving Malawi’s hard-earned macroeconomic stability.
The Fund said commitment by authorities to audit Covid- 19-related spending is a requirement.
In an interview Treasury spokesperson, Williams Banda, said the government have proper structures in place to ensure accountability.
“This is basically adherence to the Public Finance Management Act and government finance management systems which allow processes such as budgeting, seek approvals, internal audits, and the final audit so if we adhere to all those we are home and dry,” Banda said.
The country has so far has reported 38 coronavirus cases and three deaths.
