Finance Minister says debt restructuring negotiations start bearing fruits

Minister of Finance and Economic Affairs Simplex Chithyola Banda has disclosed that negotiations with debtors over debt restructuring have started bearing fruits as Malawi has signed a supplemental debt pact with China.

Chithyola Banda said this is a demonstration of confidence debtors and developed countries have in President Dr. Lazarus McCarthy Chakwera and his administration.

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He made the sentiments in an interview with the Malawi Broadcasting Corporation (MBC) on Thursday.

The minister stated, among others, that the agreement with China spells out softer conditions such as the extension of the repayment period and revised interest rates for over MK390 billion, which Malawi owes the Asian country.

Banda elaborated that this is a cushioning measure to Malawi’s unsustainable debt levels, while assuring Malawians of an economic breather.

Reacting to the development, an economic expert, Christopher Mbukwa, congratulated President Chakwera and his administration for gaining bilateral and multilateral partner confidence.

But Mbukwa emphasized the need for the Ministry of Finance and Economic Affairs to continue engaging other debtors on debt restructuring and indeed debt cancellation.

Meanwhile, Chithyola Banda has disclosed that similar discussions are also underway with Exim bank of India, Afrexim Bank and OPEC, among others.