/ 25 January 2001

IMF TELLS MALAWI TO CURB SPENDING

THE IMF has urged authorities in Malawi to tighten monetary policy and curb government spending to combat sluggish growth and the prevalence of poverty. But International Monetary Fund executive directors also pledged financial support for a poverty reduction and growth strategy drafted by Malawi authorities. The IMF-backed program calls for growth of three percent this year, inflation of 10%, a balanced budget in fiscal 2000-2001 and targeted increases in social spending. The report faulted authorities for a recent relaxation in monetary policy, which it said had contributed to a surge in inflation. – AFP