The International Monetary Fund announced on Friday that it had reached a staff-level agreement with Malawi for up to $88.3 million in emergency finance, as the southern African country suffers from severe currency shortages.
According to Reuters, Malawi, which has been facing chaotic lineups at fuel stations due to a lack of foreign currency to make payments, was set to be the first African country to receive special IMF money to deal with the global inflation issue.
The IMF said the money would help Malawi address urgent balance of payments needs, and support economic adjustment and structural reforms.
Ukraine received $1.3 billion under the same new programme, known as the “Food Shock Window”, earlier this month.
“Malawi’s request will be discussed by the IMF’s Executive Board as soon as possible,” the Fund said, adding that Malawi needed to have started a credible debt restructuring process prior to the board’s consideration.