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Thursday, April 27, 2006

Malawi’s default rate ranked high
by Frank Phiri, 27 April 2006 - 07:38:52
International credit rating agency Fitch has given Malawi a foreign and local currency Issuer Default Rating (IDR) of ‘CCC’ with positive outlook, an improvement from ‘CCC+’ that it gave the country in December.
The rating, affirmed on April 20 this year, means that the country is slowly moving from the red to solid black in terms of its credit worthiness to foreign and domestic lenders.
A ‘CCC’ rating is in the speculative category under Fitch’s ratings. It entails that default is a real possibility and that capacity for meeting financial commitments is solely dependent on sustained and favourable business or economic conditions.
In a statement issued in Johannesburg, Fitch has attributed the improvement to a track record of sound fiscal discipline that followed satisfactory completion of a six-month Staff Monitored Programme (SMP) with the International Monetary Fund (IMF), leading to reinstatement of a lending programme—the Poverty Reduction and Growth Facility (PRGF)—last August.
“Fiscal performance, the main source of macroeconomic instability in the past, has improved as a result of better expenditure management and the return of donor budgetary support,” said the ratings agency.
It notes that Malawi has achieved the minimum six-month track record for adequate performance under the IMF’s PRGF which is a prerequisite for reaching completion point under the Heavily Indebted Poor Country (HIPC) initiative.
“But [full completion] will require the maintenance of sound macro-economic management, including modifying the exchange rate system to be more flexible, and compliance with the few remaining completion point triggers, mostly in the social area,” said Fitch.
Finance Minister Goodall Gondwe admitted in an interview on Tuesday that more work must be done for the country to improve on the credit ratings ladder.
He said delays to enact the Anti-Money Laundering Bill and to clear domestic arrears were contributing to a poor credit rating for Malawi.
“We’re still lacking in these few areas, but by next year our rating should improve. If we attain full HIPC completion point by June, which I am optimistic of, that should improve our image further,” he said.
The minister said government was doing its “maximum” best to win debt cancellation, get the money laundering law in place and repay domestic arrears.
Gondwe told Nation Business Review earlier this month that government would put aside a further K3.5 billion for domestic arrears under the 2006/07 budget, after paying about K2 billion under the current budget. The domestic arrears bill stood at K10 billion in 2004.
Apart from the arrears, government owes the domestic market about K60 billion in Treasury Bills while its foreign debt stands at US$2.9 billion of which 80 percent is owed to multilateral financial institutions such as IMF, World Bank and the African Development Bank (ADB).
Fitch notes in the statement that rating constraints are significant for Malawi due to high debt ratios in comparison to rated peers in the region, and that the economy remains vulnerable to external shocks.
No comparisons could be made between Malawi and her neighbours since the findings are on individual countries, companies, banks, among others.


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Wendi said...

What are your 50,000 thoughts a day creating?

Our thoughts create our reality. This is a simple truth known by all people involved on the spiritual path. It is one of the most taught universal principles in the personal development field. Yet it is one of the most misunderstood!

People practice visualisation, affirmations, they use hypnosis, subliminal programming or countless other tools to transform their lives. However they fail to recognise one key area in their lives that hinder these wonderful techniques from being effective.

They sit day after day visualising their perfect scene and yet nothing happens. Why? They have followed all the instructions to the letter! They have chanted and imagined! They have formed a colourful, vibrant scene in their minds and affirmed that this is their reality. Then all of a sudden things get worse! What is going on?

Would you like to know the secret? Would you like to know why these people get no results? Would you like to hear one powerful statement that explains everything?

Good. I will tell you why these people get no results or even opposite results to those they are aiming for -simply because of the following truth. Consciously controlled thoughts such as visualisations do not materialise - ALL thoughts materialise!!!
Most people believe that if they visualise for 10 minutes a day their lives will magically transform. This is not the case. You must change your core thinking. You think approx. 50,000 thoughts a day. How many of those thoughts are working against your ten minute visualisation?
You can control the thoughts that enter your mind by changing the way you view the world. You can decide which thoughts you give energy to and which thoughts you discard.

The thoughts that you follow and give energy to become more dominant than the thoughts you discard. Your subconscious mind records these as your dominant picture on the issue at hand. You then move towards this picture because your subconscious mind starts making your outside world reflect the picture that you have stored internally.
Your mind should be on whatever you want. The picture you need to have is a positive vision of you already having achieved your goal. To realise this vision you need to focus and concentrate. Remember thoughts are real, they create your reality.
Let's say you have been visualising a new house. You spend your ten minutes in meditation picturing yourself living in your dream home. You finish your session and get up feeling positive that you will achieve your goal. Then during the day you get a heating bill through the post and exclaim "Oh no look how expensive this is I cannot afford to heat this house". Where is your focus in the present moment? What are you affirming? You are telling your subconscious mind that you cannot deal with what you have. You are affirming that your life is not how you want it to be. If you knew without doubt that within a week you would be moving to your new home would you honestly be worried about a heating bill? Perhaps other doubts creep in like "I should be happy with what I have", or "I will never get this house looking the way I want it" and so on and so on.
These thoughts that are not aligned with your goal. You are not giving complete attention to what you want. Whilst you are dealing with these other lines of thought your attention is not on your goal.
If you are aware of your thoughts you will suddenly realise that you have spent much more energy on counter productive thoughts than on creating a dominant picture of the goal you want.
Point your focus in the direction of you're the life you want. Think about what you want NOT what you don't want. It's that simple.

Your focus determines your reality. Change your focus and you change your life. hypnosis