In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
“It will be important to safeguard the stability of the financial system. The RBM is strengthening its oversight of banks and is assessing the true financial condition of all banks with a view to enforcing prudential regulations. It has also enhanced its monitoring of banks that have continued to have difficultymeetingliquidityrequirements.
“The authorities are making progress in implementing structural reforms to enhance the country’s competitiveness and exports. They are committed to removing regulatory hurdles to doing business in Malawi.”
Sources: Malawi Ministry of Finance and IMF staff estimates.
9. Liquidity conditions in the banking system tightened significantly soon after the May devaluation . Several banks resorted to the RBM discount window to meet their liquidity needs In order to provide relief to the hardest hit banks which continued to have difficultymeetingliquidityrequirements, the RBM introduced a temporary window for providing short-term uncollateralized loans to the banks (MEFP ¶23
This collection of papers reviews Malawi’s economic performance under a program supported by the Extended Credit Facility (ECF). Drought conditions in parts of the country have dampened the near-term outlook for growth and have resulted in food insecurity for nearly 2 million inhabitants. The authorities have therefore implemented strong adjustment measures to address Malawi’s substantial external and internal imbalances. The IMF Executive Board has also decided to enable the immediate disbursement of an amount equivalent to SDR 13.02 million (about US$20 million), bringing total disbursements under the program to an amount equivalent to SDR 26.04 million (about US$40.1 million), which will help Malawi to accelerate growth under the ECF.