IMF Grants Malawi $77 Million Loan to Cushion Trade Shocks
By Frank Jomo
December 5 2008
The International Monetary Fund granted Malawi a one-year loan facility of 10.8 billion Malawi kwacha ($76.8 million) to help it adjust to trade shocks caused by rises in fuel and fertilizer prices in the first half of 2008.
The loan, which falls under the lender’s Exogenous Shocks Facility, will allow Malawi to draw $51.4 million immediately, the IMF said in an e-mailed statement yesterday.
“The facility will help to contain the pressure on the balance of payments and rebuild external reserves,” according to the statement.