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Malawi : IMF arrives in MALAWI to review its use of $20m loan offered early this year

July 15, 2014

The International Monetary Fund (IMF) has positioned its squad in Malawi to make assessment on the southern African nation s utilization of a loan worth US$20 million, which was disbursed in early 2014.

The global financial institution had given the credit to Malawi under Extended Credit Facility (ECF).

The IMF Resident Representative in Malawi - Geoffrey Oestreicher revealed, The IMF mission team which is currently in the country, will among other things, take stock of programme implementation under the ECF arrangement and prepare the ground for resumption of discussions later in the year.

Oestreicher has further said that the Fund will be unable to distribute the next tranche as part of the ECF to Malawi before 2015.

The IMF has also requested the newly elected Malawi Government in June to execute effective policies to facilitate revival of the economy as well as alleviate inflation.

Defeating the President Joyce Banda-led government, Peter Mutharika, the leader of the Democratic Progressive Party (DPP), became the winner of the country s Presidential Election in May, 2014. But, the incumbent President had alleged that there were serious irregularities in the election.

The Malawian economy is mostly agro-based, and agriculture accounts for 37% of the GDP of the country. And around 90% of the population lives in rural areas of the nation. Moreover, Malawi earns 85% of its export revenues from the agricultural sector.

The non-coastal southern African nation is recognized as one of the most underdeveloped countries of the globe.

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Source: TendersInfo (India)

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