The World Bank Friday disbursed 25 million US dollar in support of the Government of Malawis Fiscal Management and Accelerating Growth Program (FIMAG), the Bank reports in a press release.
– On the basis of an encouraging three-months track record and the recently presented budget for the current fiscal year – which is in line with the macroeconomic program that was agreed with international finance institutions – the World Bank is releasing the first tranche of FIMAG, said Hartwig Schafer, World Bank Country Director for Malawi, Zambia and Zimbabwe.
– The World Bank will continue to monitor progress and the ability to release the second FIMAG tranche will be closely linked to the continued strong implementation of macroeconomic and structural reforms, added he.
The FIMAG program supports the Malawi Poverty Reduction Strategy (MPRS) which aims to sustain pro-poor growth, develop human capital, improve the quality of life for the most vulnerable and promote good governance.
In particular, the FIMAG program supports underlying reforms in fiscal management, the management of parastatals, measures to increase household income in rural areas, and the handling of HIV/AIDS.
– The Bank welcomes the progress and achievements of the new Government of Malawi to bring economic performance back on track and tackle governance issues head on, said Callisto Madavo, World Bank Vice President for the Africa Region.
– Looking forward, he added, “Malawi will need to push through with reforms and continue its course of tighter macroeconomic management and prudent fiscal spending.”
Reforms supported by the FIMAG will help improve fiscal management by strengthening budget formulation, execution and monitoring, and will accelerate agricultural growth through the creation of better functioning land, tobacco and maize markets.
Particular attention will be paid to improving public service delivery by supporting state governments and the development of private enterprises. Finally, the program will strengthen the institutions involved in aiding to mitigate the health and social impacts of HIV/AIDS.
The credit is on standard International Development Association (IDA) terms, with a commitment fee of 0,35 percent and a service charge of 0,75 percent. The credits period of maturity is 40 years, including a 10-year period of grace.
For more information on the World Banks work in Africa visit: www.worldbank.org/afr/
For more information on the World Banks work in Malawi visit:
www.worldbank.org/mw
Kilde: www.worldbank.org
