The International Monetary Fund (IMF) has approved an extension of Malawi’s arrangement under the Extended Credit Facility (ECF) to end of June.
According to a press release by the IMF, the extension will provide additional time for authorities to implement structural measures under the programme.
“The Executive Board of the International Monetary Fund (IMF) approved on May 16, 2016—without an Executive Board meeting1—an extension of Malawi’s arrangement under the Extended Credit Facility (ECF) to June 30, 2016. This extension will provide additional time for the authorities to implement structural measures under the program,” reads part of the press release.
The $146.7 million IMF programme was first approved on July 23, 2012 and over the past years the Bretton Woods institution has been assessing the country’s progress in the programme.
After one such assessment, the IMF suspended the programme in September last year citing government’s over-expenditure and the plundering government coffers.
The programme was however declared on track in March this year after government showed commitment to institute reforms and have the programme back on track.
According to IMF, the ECF is aimed at the achievement and maintenance of macroeconomic stability and implementation of policies and structural reforms to spur growth, diversify the economy and reduce poverty.
Thanks to the upper hand of IMF.