US Government has warned Malawi that it risks losing the Extended Credit Facility (ECF) with the International Monetary Fund (IMF) if measures to reverse some of the current fiscal policy issues are not made in the coming weeks.
Deputy assistant secretary for Africa and the Middle East at the US Department of Treasury Eric Meyer said this to the press at the end of his tour in the country, expressing concerns on “ballooning expenditures” at the time the government is registering low revenue collection.
He further said the delayed full implementation of the Integrated Financial Management and Information System, has put Malawi at risk of staying off track with the IMF.
“There have also been delays in reaching agreements on necessary debt restructuring with some of Malawi’s international creditors. This has been further complicated by deals that Malawi is pursing with some investors that could undermine Malawi’s agreements with the IMF and bilateral creditors,” said Meyer.
While in the country, Meyer had meetings with ministers of foreign affairs and local government, the Reserve Bank governor and officials at Ministry of Finance.-(Nation Online)
