IMF terminates EFC Program with Malawi government due to corruption; waits new govt in September to renew the program
We are now in self inflicting economic mood as IMF has terminated $175 million ( K306 billion) Extended Credit Facility (EFC) that was meant to restore macroeconomic stability and boost investor confidence in the country.
There will be no forex cushion for government as well until elections are conducted in September.
Reads the statement in part: "The programme faced a number of exogenous shocks which made it difficult for the supply side to assist both increased revenue and enhanced production.
"This resolution allows the political environment necessary for the progression of the ECF programme to normalize as is expected after the elections in September, 2025, thus enabling government to leverage it's fresh electoral mandate in negotiating a more sustainable extended credit facility package for Malawi's macroeconomic stability going forward."
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