The IMF said Thursday Malawi has made progress under the leadership
of President Joyce Banda after a massive government corruption scandal
last year, and urged action to bring soaring prices under control.
Malawi adopted an action plan to bust graft in the wake of massive fraud last year that prompted Western donors to freeze $150 million in aid.
“The authorities have made progress in addressing governance and
public financial management weaknesses,” said the International Monetary
Fund at the end of its latest review mission to the country.
The IMF said the central bank should “tighten monetary policy more aggressively”, noting that inflation remains high at nearly 25 percent.
President Joyce Banda, who faces an election in just over six weeks, has implemented austerity steps that led to the restoration of an IMF $79.4 million credit facility.
The facility was suspended during the administration of her predecessor Bingu wa Mutharika, who died from a heart attack in April 2012.
The IMF will return in June for another review that will pave way for the disbursement of a $20-million credit facility.–AFP.
Malawi adopted an action plan to bust graft in the wake of massive fraud last year that prompted Western donors to freeze $150 million in aid.
Malawi president Joyce Banda waves to a crowd in Lilongwe on March 29, 2014
The IMF said the central bank should “tighten monetary policy more aggressively”, noting that inflation remains high at nearly 25 percent.
President Joyce Banda, who faces an election in just over six weeks, has implemented austerity steps that led to the restoration of an IMF $79.4 million credit facility.
The facility was suspended during the administration of her predecessor Bingu wa Mutharika, who died from a heart attack in April 2012.
The IMF will return in June for another review that will pave way for the disbursement of a $20-million credit facility.–AFP.
