Johannesburg, Oct. 22 (BNA) The International Monetary Fund said on Friday that it has reached a staff-level agreement with Malawi for emergency financing of up to $88.3 million, as the southern African country struggles with an acute shortage of foreign exchange.
Reuters reported earlier this week that Malawi, which is experiencing chaotic queues at gas stations that dry up due to a lack of foreign currency to make payments, is set to be the first African country to receive special funding from the International Monetary Fund to deal with the world. Inflation crisis.
The IMF said the funds would help Malawi meet urgent balance of payments needs, and support economic adjustment and structural reforms.
According to Reuters, Ukraine received $1.3 billion under the same new programme, known as the “food shock window,” earlier this month.
“Malawi’s request will be discussed by the Executive Board of the International Monetary Fund as soon as possible,” the fund said, adding that Malawi needs to begin a credible debt restructuring process before the board’s consideration.
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