IMF says Malawi credit programme hinges on economic reforms

By Frank Phiri

BLANTYRE, ‌June 29 (Reuters) - ​The ​International Monetary Fund is ready to move quickly on a credit programme for ‌Malawi, the lender said on Monday, but warned ⁠it will depend on the country's willingness to implement ‌economic reforms.

IMF Resident Representative Nelnan ‌Koumtingue said discussions were focused on policies outlined in Malawi's National Economic Recovery Plan and ​how the fund could support them with an extended credit facility arrangement.

The comments came after ⁠an IMF mission left Malawi on June 18 without a deal.

"The ​process is evolving," Koumtingue told Reuters.

Williams Banda, a spokesman for Finance Minister Joseph Mwanamvekha, ​confirmed the talks were ongoing, ‌saying the government and IMF had "agreed on the pathway" but declined to give ⁠further details.

The National Economic Recovery Plan, tabled by Mwanamvekha earlier this month, outlines a five-year roadmap to stabilize Malawi's ⁠economy, addressing debt pressures, fiscal reform, corruption and social ​protection during the restructuring period.

Malawi's last IMF programme, worth $175 million, lapsed in May last year because the country did not ‌complete a review within 18 months of its approval, meaning it received ‌only an initial disbursement of $35 million. The Southern ⁠African nation's economic difficulties ‌include a high ​debt burden and declining donor funding.

(Reporting by Frank Phiri;Editing by Colleen Goko and Susan ‌Fenton)

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