16 May 2014

Malawi: 'Malawi Development Bank to Revamp the Economy'

Lilongwe — The People's Party (PP) has disclosed plans to establish a Malawi Development Bank with loan access at low interest rates in an effort to reduce poverty through sound economic management and governance.

"The PP recognizes that economic management and good governance are central to a transformational poverty reduction agenda. However, the main challenge of maintaining macro-economic stability is that Malawi faces significant internal and external imbalances," reads part of the manifesto.

"To transform the economy of this nation we are going to pay special attention to the rural areas and poorest segments of the population, which must be included in efforts to raise the levels of savings and must benefit from the financial international and the availability of credit."

In addition, the Peoples' Party Government says monetary policy should focus on effective monetary management to ensure low and competitive interest rates, single digit inflation, stable exchange rates, reasonable spread between lending and savings rates, and the establishment of long-term capital market.

The manifesto furthermore states that the party plans to build capacity for financial programming in the Ministry of Finance, and the Reserve Bank of Malawi as a strategy to develop a systematic, comprehensive and consistent programme to ensure efficient, effective and prudent use of public resources.

According to the document, the PP Government understands the importance of consistent power and energy in developing Malawi.

"We will ensure availability of uninterrupted power and energy supplies, "reads part of the manifesto.

The PP regime, however has prepared long-term strategies that will ensure manageable and sustainable domestic debt levels; and mobilize alternative finances/resources to reduce dependence on donors by 30 percent within five to ten years.

Peoples' Party government has pledged the people to monitor and control the internal imbalance which is evident in perennial budget deficits while the external imbalance manifests itself in the enormous gap between the cost of imports and the revenue derived from exports.

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