The International Monetary Fund (IMF) has described Malawi’s performance in the context of the First Review of the Staff Monitored Program with Executive Board Involvement (PMB) based on end-December 2022 targets was mixed as mixed.

The rating follows discussions that the team led by Mika Saito had with the country’s authorities on performance under the programme.

According to a statement released by IMF Mission Chief for Malaŵi on Monday, the development partly reflects implementation challenges linked to the fact that the macroeconomic adjustment programme was put in place late in the fiscal year.

“The authorities are committed to taking the necessary steps to deliver on the agreed program targets and objectives, including through strong corrective actions.

“Meanwhile, the authorities continue to work closely with their debt advisors to achieve tangible and expedited progress on their debt restructuring process in line with their published strategy that underpinned the PMB request,” said Saito.

She added that it was thus difficult to reverse course on government spending, and in turn, money growth and foreign exchange reserve accumulation.

Saito stressed that virtual discussions will continue to pin down modifications of the programme targets to reflect negative shocks from Cyclone Freddy.

Apart from meeting President Lazarus Chakwera, the IMF staff team also engaged finance minister, Reserve Bank of Malaŵi (RBM) Governor and other government officials.

The team also engaged with the Public Accounts Parliamentary Committee (PAC), Civil Society Organizations (CSOs), and development partners.

The programme was approved by IMF Management in November 2022, together with a disbursement of US$88.3 million under the Rapid Credit Facility—Food Shock Window.

It aims at supporting government’s efforts in building a track record for an Extended Credit Facility (ECF) and to improve the lives of Malaŵians.