Information service of the Pontifical Mission Societies since 1927
Lilongwe (Agenzia Fides)- “News long awaited, Malawi’s foreign debt to be cancelled at last!” Malawi’s press titled on 2 September announcing the news of a 90% remission of the country’s foreign debt. “The amount to be cancelled is enormous and 110 million dollars of interest paid annually can be used for education, healthcare...... which hitherto have received only the crumbs” Monfort missionary Fr Piergiorgio Gamba told Fides including also photographs in his report.
“But is Malawi ready and will the money saved be well used?” the missionary wonders. “It is difficult to say. Some political leaders are reluctant to see change. Poverty makes exploiters of the situation rich. The international finance institutions will want to know exactly how the saved money is used and for many of those in power this sort of control would be uncomfortable”.
The missionary hopes that “this time all will go well and the cancellation of debts will mark a new beginning because the country’s situation is stagnant in extreme poverty, scarcity of food and the economy at a standstill”.
On 1 September the International Monetary Fund and the World Bank announced the cancellation of Malawi’s international debt by (90%) 2.9 billion dollars. In Malawi, one of the world’s poorest countries, most people live on less than a dollar a day. The cancellation of the debt will allow Malawi to save an annual 110 million dollars of interest. Malawi’s finance minister Goodall Gondwe hailed the cancellation as a “mile stone which will help the country overcome poverty with a 2% growth in the national economy, aiming for a 6% growth”.
Since he came to power in 2004 President Bingu wa Mutharika has piloted a policy of economic improvement which has won praise from international finance institutions.
However former economist Bingu wa Mutharika’s policy to improve the economy and eliminate corruption caused controversy in the country’s political life. The Opposition started a procedure of impeachment, accusing the head of state of abuse of office. (L.M.) (Agenzia Fides 5/9/2006 righe 33 parole 407)
