China, one of Malawi’s key lenders, has agreed to restructure Malawi’s debt.
Secretary to Treasury Betchani Tchereni has confirmed the development.
The restructuring is that the loans have now become interest-subsidized concessional loans which means that the interest rate is lower and the grace period has been extended by 78 months.
“This has provided a relief to us such that the sustainability of the debt has improved,” Tchereni said
Government is pursuing a debt restructuring mechanism with its key bilateral and multilateral partners in a move to make the debt sustainable.
