President Lazarus Chakwera says the approval of US$88.3 million (K91 billion) Rapid Credit Facility to Malawi by the International Monetary Fund (IMF) is a sign of trust that IMF and other global institutions have trust in his leadership.
Chakwera took to social media this morning to celebrate the announcement by IMF that it will provide funds under the new Food Shock Window of the Rapid Credit Facility to help Malawi address urgent needs related to the global food crisis.
On Twitter, the president said the support “signals a new dispensation of trust from bilateral and multilateral global institutions.”
Writing on Facebook, he said: “My administration considers this a milestone for it signals restoration of trust from bilateral and multilateral stakeholders, who now acknowledge that Malawi is satisfactorily realigning her fiscal and monetary systems towards sustainable economic growth.”
Chakwera also described the RCF as great news for Malawi and a timely intervention for the economy which he said had suffered from external shocks, natural disasters and emergencies, among others.
“This provides policy support and opens the door to catalyse foreign aid,” he said.
He added that his administration will continue to engage these key financial institutions in respect of lasting economic solutions.
In a statement, yesterday, Mr. Bo Li, IMF Deputy Managing Director and acting chair, said Malawi is facing a challenging economic and humanitarian situation, with foreign exchange shortages and an exchange rate misalignment leading to a sharp decline in imports including fuel, fertilizer, medicine, and food.
“The emergency financial assistance under the RCF’s new food shock window would help address urgent balance-of-payments needs and mitigate the impact of the food shock,” he said.