"It's shameful that the UDF party wants to take us back to the dark days,"

Mr Gwanda Chakuamba (2003)

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Tuesday, July 15, 2008

IMF ups loans to Malawi as fuel costs squeeze

WASHINGTON (Reuters) - The International Monetary Fund increased
funding to Malawi by $16.9 million on Monday, approving a total
disbursement of $24.7 million to help the country cope with soaring
fuel and fertilizer prices.

The disbursement to the southern African country is the final
payment by the IMF under a three-year $62.1 million loan program agreed
in 2005.

IMF Deputy Managing Director Takatoshi Kato said the increased
funding was approved because of concerns over Malawi's low levels of
international currency reserves and the threat that posed to financial
stability and food security.

"Rising fuel and fertilizer prices are increasing the downside risk
and adding inflation pressure," Kato said in a statement. "Further
consolidation of government net domestic debt will facilitate the
further accumulation of international reserves without jeopardizing
growth and crowding out the private sector," he added.

The IMF said financial help from donors would help smooth the adjustment.

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