Updated: February 28, 2021
The International Monetary Fund (IMF) has approved an additional disbursement of $101.96 million emergency support to Malawi to respond to COVID-19.
This is the second disbursement under the Rapid Credit Facility (RCF), which brings total IMF COVID-19 emergency support to Malawi to US$193 million.
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According to the IMF, Malawi’s economic outlook has worsened since the first RCF as COVID infections have risen and the global and regional economic situation has deteriorated.
Mr. Zhang, IMF Deputy Managing Director and Chair said authorities in Malawi are actively implementing measures to mitigate the impact of the pandemic and preserve macroeconomic stability.
Key steps include strengthening the health care system, stepping up social spending, ensuring food security, and easing liquidity constraints in the banking system.
“The IMF’s emergency financing under the second RCF will help close the immediate additional external and fiscal financing gaps. Further concessional assistance from the international community will be critical to close the remaining external financing gaps during 2020 and 2021 and help ease the adverse economic and social impacts of the pandemic, while preserving Malawi’s hard-earned macroeconomic stability,” he said.