Impoverished Malawi will have to wait till next month to hear whether millions in much needed aid will be made available, the International Monetary Fund (IMF) announced on Monday.
Joseph Kakoza, the fund’s Malawi head, said it will be waiting for next month’s presentation of the national 2003/2004 annual budget before making a presentation to its executive board to resume aid to Malawi.
Having just completed a two week visit to Malawi, Kakoza said the IMF would also be waiting for the implementation of government’s fiscal targets for the month of June.
”We would be monitoring how the Malawi government will implement its fiscal target for the past three months ending June. We hope that the budget will reflect what we discussed. It is our hope and every Malawian’s hope that we can revive the economic programme for
Malawi,” he said.
The IMF is withholding $47-million because the country could not meet preset financial conditions.
Kakoza supported the government’s intention to use a major portion of the aid to reduce domestic debt, strengthen controls, monitor government expenditures and enhance tax administration and revenue collection.
Minister of Finance, Friday Jumbe told journalists on Monday that government has made remarkable progress in its fiscal discipline and urged donors to respond positively to the development.
”I am very sure that we are going to meet our targets for the past three months by the end of this month and we are sure of having positive results when the IMF executive board meets sometime
in August,” he said.
Last year the cash strapped southern African country approved a Bill authorising the government to borrow $50-million from the World Bank to buy food relief to ease the current food crisis.
An estimated 3,2-million people face starvation in the country, in a food crisis blamed on both drought and government mismanagement of grain reserves. – Sapa-AP