The Reserve Bank of Malawi (RBM) says the country is not in a debt crisis.
RBM Spokesperson, Mark Lungu, told MBC after the bank issued a statement on the country’s debt situation which stands at $1.2 billion (approximately over K1.2 trillion) accumulated over a period between 2012 and 2020.
Lungu says the matter requires urgent attention, but was quick to say the government is already on top of the situation. RBM says once the situation is unattended, can result in a debt crisis.
‘‘The statement we have issued is simply to put certain facts right. We observed that in the last few days, there have been a lot of stories that have come out with incorrect facts, the statement talks about debt being unsustainable. This, however, does not mean the country is in a crisis. But it means our debt situation requires urgent attention, which is a thing that we are doing as a country,” Lungu said.
However, Lungu said at the moment, RBM and the government have taken some decisive actions to remedy the situation.
“We have engaged all creditors, both commercial and bilateral into debt discussions. Essentially, we are seeking debt restructuring so that our debt levels can become sustainable in the short, medium and long term. Secondly, as a government, we are no longer borrowing on commercial terms. We can only borrow on concessional terms and finally, we are also looking into how we can increase our exports so that we enhance our capacity to generate forex.
“In this regard, the country’s export diversification drive is in full swing. That’s why the government is promoting increased agricultural productivity through mega-farms, agro-processing, mining agreements; and of course, promoting tourism,” he said.
Reported by Kumbukani Phiri.