President Dr Lazarus McCarthy Chakwera says Malawians should continue having hope that his government will secure Extended Credit Facility (ECF) despite the International Monetary Fund (IMF) rating the country poorly some weeks ago.
Malawi is reportedly owing AFREXIMBank and Trade and Development Bank (TDB) a total of $850 million [about K850 billion], which the IMF wants to be squared before committing to the ECF.
At the recent AFREXIMBank in Accra, Ghana, last week, Chakwera pleaded with the bank to consider a debt-restructuring plan that would allow Malawi to secure ECF.
His plea follows an announcement by IMF that the next assessment for its readiness for the ECF is due end of June 2023.
Meanwhile, President Chakwera has assured Malawians that his government is addressing issues IMF highlighted in its report to ensure that the country secures the facility.
He said ECF would help in restoring Malawi’s repayment capacity by rebuilding reserves and reducing the macroeconomic imbalances the country is suffering from.
“Our engagement with you regularly over the past few months was, therefore, in pursuit of a debt restructuring mechanism that would allow us to fully restore debt sustainability and unlock an ECF for Malawi that would eventually yield dividends for both Malawi and the bank,” Chakwera told journalists.
AFREXIMBank has since assured Chakwera that it is in solidarity with Malawi’s pursuit of the debt restructuring mechanism to secure the ECF.
“We will do everything we can to resolve the issues and it is always refreshing listening to your commitment and understanding of the issues we are dealing with, Mr President,” said the bank’s chief.