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YTP


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MALAWI IMF AID
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Monday, 8 August 2005





National

IMF resumes aid to Malawi


by Tadala Makata Kakwesa, 08 August 2005 - 07:10:05

The International Monetary Fund (IMF) has announced the resumption of aid to Malawi five years after the country lost donor confidence due to financial mismanagement by the Bakili Muluzi administration.
IMF made the announcement immediately after its executive board meeting in Washington last Friday.
The IMF Resident Representative Thomas Baunsgaard said the approval of the resumption of aid means Malawi has entered the Poverty Reduction Growth Facility (PRGF) with a sum of $55 million.
“I am pleased to announce that the Executive Board of the IMF earlier today approved a new three-year arrangement under the Poverty Reduction Growth Facility (PRGF),” said Baunsgaard.
The IMF Executive Board also approved a further interim amount of K0.8 billion for the Heavily Indebted Poor Countries (Hipc) initiative which has been disbursed to support the country avert this year’s maize shortfall.
Principal Secretary in the Ministry of Finance responsible for Finance and Administration Patrick Kabambe, who acknowledged IMF’s approval, expressed happiness on the development, saying the current administration will maintain its commitment to good governance and continue to spend within budget.
“We are very happy with the IMF’s move. You know we have worked so hard to get back on track and that has shown that IMF and all our donors have confidence in Malawi, especially with the Hipc assistance which will be very crucial for government,” said Kabambe.
He said IMF’s opening of doors means the commitments made by the bilateral donors for budgetary support will now be fulfilled.
Two weeks ago the European Union and the British Government made separate budgetary support commitments of K6.2 billion and K4.5 billion respectively.
The IMF was supposed to meet on July 17, 2005 to discuss Malawi’s case but government negotiated for a later date due to the delay in passing of the 2005/2006 budget which was approved on July 15, 2005.
The IMF accepted Malawi’s request and set the Washington meeting for August 5, 2005.
In July last year the Malawi Government asked for a Staff Monitored Programme (SMP) for the IMF in order to be able to bring its financial record back on track.
Since then the country has been observing the SMP to address macroeconomic imbalances by containing government borrowing and holding down inflationary pressures.
The PRGF is the IMF’s special consideration facility for low-income countries which carries an annual interest rate of 0.5 percent, and are repayable over 10 years with a five-and-a-half-year grace period on principal payments.


Lets see what they do with the money now. 














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Now ain't that a kick in the head!


There couldn't be a worse thing that could possibly happen to MW. I believe this is a "one step forward, two steps back situation" and the result can only spell disaster for MW.



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malawian


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I'm not sure if this programme will last three years. Accusations will be born, corruption cases will arise etc. Those who make the accusations always forget that they hurt themselves and the Malawian nation.

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Woza477


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Only time will be the best judge if this administration will practice what it preaches (anti-corruption), otherwise we are f***d forever.

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The corruption we should be worrying about is the western institutional corruption of the IMF and its loans system. All that trash about reducing and cancelling debt has faded, now the real  shafting of the poor nations is falling into place. This is just the begining.


For starters - what is the aim of this aid? What are the true motives of it? and most importantly, how is it going to be paid back? Those are the real issues and if you forgive my scepticism we don't exactly need this IMF aid. Instead we should start finding ways of building our confidence, self-reliance and assertiveness within Africa.


AID DOES NOT AND NEVER WILL WORK...



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jones_1


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mukadadziwa...  IMF ndi 'katapira'.  the interest on paying back is way 2 big!

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2 true Abre, this stinks. Malawi is putting itself into more trouble than it thinks. No-one can strongly survive on handouts that come with conditions. The best tool Mw can have is knowledge on how to make its own money and not take from some big fish who is feeding you to eat you after you've had enough.


Dunno what Bingu will do though.



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jones_1


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amdala...

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jones_1 wrote:

amdala...


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jones_1


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YTP,


i think theres some mistake!im even surprised!


 


havent been posting anything since...i cant remember when...



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amdala


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Jones 1...


its funny, i am surprised too but not that much...



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