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African Development Bank ready to inject $45 million into Malawi
African Development Bank President Donald Kaberuka. PHOTO/File
(Reuters) – The head of the African Development Bank (AfDB) said on Sunday he is willing to provide US$45 million in budget financing for Malawi to help new President Joyce Banda revive the struggling economy.
Speaking after meetings of the International Monetary Fund (IMF) and World Bank in Washington, African Development Bank President Donald Kaberuka told Reuters he was determined to support Malawi as it tries to resume economic reforms.
He said he had held “good” discussions with Malawi Finance Minister Ken Lipenga on the sidelines of the meetings.
“I am confident Malawians are doing the right thing and we want to support them,” Kaberuka said in an interview.
“This will be US$45 million in two tranches. I am considering front loading this first tranche to support the currency re-alignment and to make the next tranche a floating one.”
Kaberuka said the development bank would begin discussions on budget support, which were put on hold last year.
“Now that they are having very constructive discussions with the IMF, I am prepared absolutely to support Malawi as they resume the reforms, which were doing so well some time ago,” he said.
