Malawi: Third and Fourth Reviews Under the Extended Credit Facility Arrangement, Request for Waivers for Non-observance of Performance Criteria, Extension of the Arrangement, Rephasing of Disbursements, and Modification of Performance Criteria-Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Malawi

This paper focuses on Malawi’s Third and Fourth Reviews Under the Extended Credit Facility (ECF) Arrangement. Donors have suspended some aid disbursements to Malawi in response to a scandal involving the theft of public funds. Recovery is under way in many sectors of the economy, facilitated by increased availability of foreign exchange. Performance in relation to quantitative targets for the third ECF review was good, but weakened for the fourth review. There was significant fiscal slippage (excessive domestic borrowing) during July–September 2013. The IMF Staff supports the authorities’ requests for waivers based on corrective actions and policy commitments.