The IMF Squeezes & Africa's Malawi Starves

The IMF Squeezes & Africa's Malawi Starves '' Malawi's leader, President Bakili Muluzi has repeated accusations that the International Monetary Fund worsened the food shortage.

Malawi is pursuing a structural adjustment programme and the IMF advised that the country sell its grain reserves to repay its debts, Mr Muluzi told the BBC.

Muluzi says the IMF recommended sale of maize The IMF has denied making these recommendations.

[....]

Mr Muluzi said that if the IMF had not told Malawi to sell off its reserve stocks of maize, there would be enough to feed those whose crops had failed.

"We were advised by the IMF, to say 'You cannot keep this maize when you owe the banks money. Sell the maize and repay them'," he told the BBC's Alastair Leithead at the World Economic Forum in Durban. ''

- BBC.co.uk

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'' The International Monetary Fund (IMF) has withheld US$47 million out of US$55 million aid meant for a three-year Poverty Reduction and Growth Facility following government failure to fulfil the programme's conditions.

IMF Resident Representative Girma Begashaw said in a written response that the Fund released only US$8 million out of the US$55 million, holding back the rest because of government failure to implement agreed reforms.

He said the disbursement of the remaining US$47 million was originally scheduled to take place within three years of concluding reviews of implementation by the Malawi Government of macroeconomic and structural reforms. ''

- Daily Times (Malawian) [April 26, 2002]

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