By Anthony Areh
Suffering a financial deficit stemming for the COVID-19 pandemic, Malawi is to get a lifeline from the International Monetary Fund (IMF) to meet its urgent balance of payment (BOP) needs.
IMF reported in its publication that it has approved a disbursement of US$91 million under the Rapid Credit Facility to help Malawi.
The pandemic is expected to have a significant impact on Malawi including affecting the near-term economic outlook, which has deteriorated significantly.
The authorities have proactively responded to the pandemic with a national response plan—supported by the World Health Organization and other development partners—and measures to preserve macroeconomic stability while protecting the vulnerable.
The Executive Board of IMF approved a disbursement under the Rapid Credit Facility (RCF) equivalent to SDR 66.44 million (US$91 million or 47.9 percent of quota) to help Malawi meet the urgent balance of payment (BOP) needs stemming from the COVID-19 pandemic.
Malawi is being severely affected by the COVID-19 pandemic. Spillovers from the sharp global slowdown as well as the economic disruption in the region are weighing on international trade, tourism, remittances, investment, and consumption.
The national lockdown introduced to contain the pandemic has also impacted the near-term economic outlook, which has deteriorated significantly, with large uncertainties surrounding the duration and spread of the pandemic.