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| Business |
| Jumbe says polls not affecting aid |
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by
Ephraim Munthali, 11 March 2003
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Finance Minister Friday Jumbe has brushed aside fears that the International Monetary Fund (IMF) are waiting for the 2004 general elections to pass, saying he has been assured by the fund that aid will flow if the next meeting is fruitful.
“I also had the same fears at first but they [IMF] have assured me that elections need not disturb our programme. I believe them because it has happened before in other countries who have got the money two months before elections,” he said.
Financial observers have cast doubt on the return of the US$47 million IMF programme under the Poverty Reduction Growth Facility (PRGF) currently being withheld, saying donors may regard the period too uncertain to pump in money.
“The IMF may just be buying time now until after the general elections so that they start afresh with who ever is in government after 2004. This is a very uncertain period,” said Exley Silumbu, an economics lecturer at Chancellor College in an earlier interview.
Jumbe, speaking in an interview in Blantyre on Monday, said his ministry is still working with the IMF in preparation for another round of discussions either here or in Washington.
He said the date and venue for the said meeting has not been set yet because government and the fund are “still exchanging documents” before the meeting.
“I would, however, be happy if the meeting took place here because it will be expensive to go to Washington with my delegation. In addition to that, the IMF can have a better picture here than if somebody goes there,” said Jumbe, claiming that all measures to impress the fund have been implemented.
Last month, a Common Approach to Budget Support (Cabs) meeting composed of donor countries including Britain, Norway, Sweden and European Commission, who are jointly withholding US$75 million (K6.75 billion), resolved to keep their money until the IMF decides favourably on its programme with Malawi.
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