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The International Monetary Fund (IMF) has operated in Malawi since 1965.
| This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these template messages)
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The International Monetary Fund (IMF) has operated in Malawi since 1965.
Malawi joined the International Monetary Fund on July 19, 1965. Malawi has since concluded 13 arrangements (loans) with the fund. The first came on October 31, 1979 and the thirteenth on July 23, 2012. Among the 661,749 Special Drawing Rights agreed on these 13 loans, Malawi has drawn 493,679 SDRs, of which 149,741 SDRs are still pending. Malawi's quota amounts to 138.8 million Special Drawing Rights. [1]
Malawi belongs to Africa Group 1, the IMF's largest constituency, along with 22 other nations. [2] The constituency as a whole yields 2.97 percent of the collective voting power within the fund and is egalitarian, unlike other large constituencies, As of 2017 Maxwell M. Mkwezalamba, Malawi's former Minister of Finance, serves as the constituency's Executive Director, [3] a position that rotates among members.
On July 23, 2012, the IMF's Extended Credit Facility (ECF) approved a loan of 138,800 SDRs, of which Malawi has drawn 119.3 million. [1] Malawi sought financial assistance from Fund, because the nation was facing a budget crisis. In July 2012, the ECF issued a loan of $156 million to prevent the depletion of the country's international reserves. [4] Goals of the fund's intervention included reducing inflation, increasing foreign-exchange reserves, and enhancing financial services to improve the nation's balance of payments and encourage foreign investment. As a result of a drought caused by El Niño weather patterns, the Fund approved a 49.2 million dollar disbursement. [5] Because of a reduction in maize production by about 12%, intervention was necessary to prevent maize price inflation. [6] The United Nations World Food Program estimated that the reduction in the production of maize and other crops has left over 6.5 million Malawians susceptible to food insecurity. [7] The IMF approved this additional disbursement in order to alleviate the food shortage. [8]
Founded by the IMF and the World Bank in 1996, the Heavily Indebted Poor Countries organisation (HIPC) extended debt forgiveness to the world's most indebted nations. Among those 36 countries who met the requirements of this initiative include Malawi, Afghanistan and Haiti. [9] Malawi was the 20th country to be approved as a participant in the initiative, and once approved, Malawi became eligible for further debt relief from the World Banks IDA, the IMF and the African Development Fund (AfDF) under the Multilateral Debt Relief Initiative (MDRI)." [10]
The economy of Malawi is $7.522 billion by gross domestic product as of 2019, and is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries. In 2017, agriculture accounted for about one-third of GDP and about 80% of export revenue. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. The government faces strong challenges: to spur exports, to improve educational and health facilities, to face up to environmental problems of deforestation and erosion, and to deal with the problem of HIV/AIDS in Africa. Malawi is a least developed country according to United Nations.
The economy of Nicaragua is focused primarily on the agricultural sector. Nicaragua itself is the least developed country in Central America, and the second poorest in the Americas by nominal GDP. In recent years, under the administrations of Daniel Ortega, the Nicaraguan economy has expanded somewhat, following the Great Recession, when the country's economy actually contracted by 1.5%, due to decreased export demand in the American and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. The economy saw 4.5% growth in 2010 thanks to a recovery in export demand and growth in its tourism industry. Nicaragua's economy continues to post growth, with preliminary indicators showing the Nicaraguan economy growing an additional 5% in 2011. Consumer Price inflation have also curtailed since 2008, when Nicaragua's inflation rate hovered at 19.82%. In 2009 and 2010, the country posted lower inflation rates, 3.68% and 5.45%, respectively. Remittances are a major source of income, equivalent to 15% of the country's GDP, which originate primarily from Costa Rica, the United States, and European Union member states. Approximately one million Nicaraguans contribute to the remittance sector of the economy.
Debt relief or debt cancellation is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.
The heavily indebted poor countries (HIPC) are a group of 39 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund (IMF) and the World Bank.
The debt of developing countries usually refers to the external debt incurred by governments of developing countries.
The Paris Club is a group of officials from major creditor countries whose role is to find co-ordinated and sustainable solutions to the payment difficulties experienced by debtor countries. As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment.
The external debt of Haiti is a notable and controversial national debt which mostly stems from an outstanding 1825 compensation to former slavers of the French colonial empire and later 20th century's corruptions.
Multilateral Debt Relief Initiative (MDRI) was approved on June, 2005, by the finance ministers of the G8 during the 31st G8 Summit, held at Gleneagles, Scotland. MDRI is different to HIPC, but operationally related. Countries in the termination point get full relief of their debt with IMF, International Development Association (IDA) and the African Development Bank (AfDB). MDRI was approved for encouraging debtor countries to continue their political reforms. For reasons of equal treatment of Low Income Countries (LIC) the relieved debts were counted when new ancillary remedies were guaranteed by IDA and AfDB. G8 members committed themselves to compensate IDA and AfDB refluxes with further remedies. These compensations will be shared among IDA and AfDB beneficiary countries according to the efforts they make.
Tanzania is a member of the International Monetary Fund (IMF) with a current quota of US$551.35 million, and is a part of the South Africa and Nigeria led constituency with a totaling voting share of 2.97%. The IMF has been involved in Tanzania's economy since the 1970s. Over the years, there have been roughly three stages of the IMF's involvement in Tanzania: the first round of reform lasted from 1986 to 1995, the second round of reform lasted from 1996 to 2006, and the third round focused mainly on consolidating the reforms made from previous stages.
El Salvador has been a member of the International Monetary Fund (IMF) since 1946. Their quota currently consists of 287.20 million SDR. The country has received loans from the IMF in the past, but most recently has received only standby loans and currently has no outstanding payments. As of June 2017, the standby arrangements total 1,442,300 SDR while the government has only drawn upon 132,250 SDR.
Portugal joined International Monetary Fund (IMF) on March 29, 1961. They joined by submitting 100 percent of their quota, which is 2,060.10 SDR. Currently, Portugal is using 187.5 percent of their quota, which is 3,862.69 SDR. Portugal has not had an IMF disbursement since 2014. Portugal has just .44 percent of voting power in the IMF.
Poland was one of the founding members of the International Monetary Fund (IMF) in 1945. Under pressure from the Soviet Union, the country withdrew in 1950, believing that the organization had become a tool for the United States. Poland rejoined the IMF in 1986, following the end of martial law in Poland (1981–1983) and the withdrawal of the US veto against Polish membership.
The Democratic Republic of Congo (DRC) joined the International Monetary Fund (IMF) on September 28, 1963.
The Republic of Belarus became a member of the International Monetary Fund on July 10, 1992 and has since taken out a significant amount of loans to stabilize their economy, balance of payments and hyperinflation. Belarus IMF quota is 681.5 millions of special drawing rights (SDR), 0.14% of IMF total. They have 8,280 number of votes, which independently gives them a .16% voting share. Pavel Kallaur currently holds the board of Governor seat. When it comes to voting power Belarus is grouped in the constituency system consisting of Austria, Czech Republic, Hungary, Kosovo, Slovak Republic, Slovenia, and Turkey- together they have 162,344 total votes with 3.23% percent of fund total. Raci Kaya is currently the Board of Governor for the constituency system.
Greece is one of the original members of the International Monetary Fund, joining it on December 27, 1945. It has a quota of 2,428.90 million SDRs and 25,754 votes, 0.51% of the total IMF quota and votes. Greece has been represented on the IMF Board of Governors by Minister of Finance Christos Staikouras since 2019. Greece elects an Executive Director on the fund's Executive Board with Albania, Italy, Malta, Portugal and San Marino. Michail Psalidopoulos is the elected alternate director. Greece has signed two loan agreements with the IMF: a Stand-By Arrangement from 2010 to 2012 and an agreement under the Extended Fund Facility from 2012 to 2016, borrowing a total of 27,766.3 million SDR. Greece owes the IMF 6,735.64 million SDR, and is the fund's third-largest borrower. In 2018, the fund began conducting annual post-program monitoring of Greece in addition to its annual Article IV consultation.
With the world’s largest production of cacao and cashew nuts, Ivory Coast is one of the leading economic powers in West Africa. It joined the IMF in 1963. Since then, Ivory Coast participated in 14 arrangements and purchased more than 1016 millions in procurement and loans. It now possesses 650.4 million SDR of quotas.
Bolivia joined the IMF on December 27, 1945. Since 1945, Bolivia has cooperated with the IMF to achieve social reforms and economic growth. These efforts have involved strategies to reduce poverty, increase social equity, improve the education system and healthcare system, and expand social services to rural populations and underserved urban communities. Since 1984, Bolivia has been an active client of the fund, accessing 19 credit lines with the fund since joining.
Sri Lanka joined the International Monetary Fund on August 29, 1950. Since June 1965, Sri Lanka has taken 16 loans from the IMF, with a total value of 3,586,000,000 SDR's. The most recent of these loans was agreed to in June 2016, with an agreed total of 1,070,780 SDR's, and 715,230,000 SDR's being withdrawn. Of this total, 715,230,000 SDR's remain outstanding.
Nicaragua joined the International Monetary Fund (IMF) on March 14, 1946 and to date has made 18 arrangements with the IMF. Its current quota is 260 million in Special Drawing Rights (SDR).
Serbia has been a member of the International Monetary Fund (IMF) since December 14, 2022 with a quota of Special Drawing Rights (SDR) 654.8 million and 8,0007 votes. Serbia is currently represented on the Executive Board by Piotr Trabinski in a constituency with Azerbaijan, Kazakhstan, the Kyrgyz Republic, Poland, Serbia, Switzerland, Tajikistan, Turkmenistan, and Uzbekistan that holds 2.88% of the total vote share.