reforms, and efforts to secure donor support. The Fund supported the authorities’ efforts through a Rapid Credit Facility (RCF) disbursement in early April 2015 and a Staff-Monitored Program (SMP).
However, major policy slippages have occurred since the RCFdisbursement, pushing the SMP off track and worsening the outlook considerably especially since budget support from donors will not be forthcoming. In early May 2015, the President’s office issued a directive imposing an exchange rate overvalued by more than 20 percent compared to the prevailing market rates, which
1. On behalf of our Malawian authorities, we thank management and staff for their timely response to this second request for emergency financial assistance under the Rapid Credit Facility (RCF). Our authorities believe the RCFdisbursement would help catalyze additional support from development partners.
2. The economic impact of the COVID-19 pandemic has deepened since the approval of the first RCF request in May 2020. A rapid increase in the number of infections put pressure on the health system with additional demands on healthcare