Malawi has requested a four-year extended credit facility to help with balance of payments difficulties, the International Monetary Fund (IMF) said on Monday.
The IMF said in a statement after talks with Malawian government officials and private sector representatives.
It said the donor-dependent southern African country has been experiencing acute foreign currency shortages.
Late last month it allowed its kwacha currency to weaken 25 per cent against the dollar.
The authorities have requested an arrangement on the back of the protracted balance of payments problem.
The fund said restoring debt sustainability and resolving a case involving alleged misreporting of foreign-exchange reserves were pre-requisites for IMF support.
“While the authorities are addressing these issues, the IMF team conducted a mission to agree on a macroeconomic framework, policies and reforms,” it added.
The IMF said it welcomed the move to normalise the forex market and that Malawi’s authorities had engaged a debt advisor to support efforts to address unsustainable public debt. (Reuters/NAN)
