The International Monetary Fund (IMF) has terminated Malawi's $175 million loan program. This decision comes after no review was completed over an 18-month period. The initial disbursement was $35 million under the Extended Credit Facility approved in November 2023.
The IMF stated that the program failed to restore macroeconomic stability. Malawi faces inflation exceeding 30% annually and severe foreign exchange shortages. These shortages have limited essential imports like fuel and fertilizer.
Malawi's government plans to negotiate a new IMF program following national elections in September. They cite "exogenous shocks" such as a cholera outbreak, cyclones, and drought as hindering economic stabilization efforts.