Malawi needs nearly $1 billion in debt relief from its creditors by 2027, according to the International Monetary Fund’s announcement on Wednesday.
The country is faced with severe shortages of essential items such as medicine, fuel, and fertilizers, primarily attributed to chronic foreign currency shortages.
The IMF report specifies that Malawi requires $887 million in debt relief from its commercial creditors and an additional $99 million from its bilateral creditors for the period spanning from 2023 to 2027.
Last week, the IMF Executive Board granted approval for a four-year loan of $178 million to Malawi. Securing a commitment from bilateral creditors, particularly China and India, to restructure their share of the external debt, which stood at $4 billion at the close of 2022, was a crucial prerequisite for the IMF board’s endorsement of the loan, Reuters reported.
Source: BI
