EU Speaks on Budgetary Support Resumption
The European Union (EU) says there is no specific timeline for the resumption of budget support to the country.
EU Ambassador to Malawi Rune Skinnebach has told Zodiak Online that the resumption depends on a number of factors that include debt restructuring.
“The EU is supporting the ministry of finance in the reform of public finance management. There is notable progress in the improvement of public finance management. A case in point is the adoption of the PFM act and the preparation of its regulations as well as a rolling plan for the implementation of the reform.
“We look forward to continued robust implementation of reforms, in particular in the field of commitment control and cash management, in order to avoid the creation of domestic arrears. With regard to the macro-economic situation, the main issue concerns the restructuring of the external debt in order to return to sustainable levels,” he said.
Ambassador Skinnebach says that they have a close and trustful dialogue with government on the issues and actively support the ministry of finance in its work towards robust financial management and debt sustainability.
“Cognizant of the complexity of these matters and the difficulty to get all stakeholders on board, the EU recognises the strong and decisive efforts of this ministry,” he said.
Treasury spokesperson Taurai Banda has acknowledged the observation.
Banda says government is on course with negotiations for debt restructuring with all creditors.
On the macro front, he says government is fully engaged with the International Monetary Fund on a possible Extended Credit Facility.
Banda added that government remain committed to implement commitment control and transact through the Integrated Financial Management Information System, IFMIS.