Malawi in Talks to Revamp About $1 Billion of External Loans

  • Nation can’t benefit much from using G20 Common Framework
  • IMF considers Malawi to be at high risk of debt distress

A cooking oil seller in Lilongwe, Malawi.

Photographer: Amos Gumilira/AFP/Getty Images

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Malawi is in talks with international lenders to restructure as much as $1 billion of debt as the nation seeks an economic program from the International Monetary Fund.

The government started talks with lenders including the African Export-Import Bank and the Eastern and Southern African Trade and Development Bank to reorganize its loans, Finance Minister Sosten Gwengwe said March 15. Malawi owes $757 million to Afreximbank and $145 million to TDB, along with $209 million of arrears, as of December 2020, according to the IMF.