Chakwera’s fiscal prudence wins back EU’s direct budgetary support

The European Union has given a greenlight to continue their direct budgetary support in the next financial fiscal year, thanks to the economic prudence by President Dr Lazarus McCarthy Chakwera led administration.

Speaking to reporters on Saturday in Lilongwe, the EU Ambassador to Malawi Rune Skinnebach said the EU is poised to continued its direct budgetary support to Malawi after being impressed by President Chakwera’s fiscal undertakings to bring the Malawi economy on track.

He said: “I am very hopeful that the EU will now be in a position to resume direct budgetary support to Malawi on the next fiscal year.”

Skinnebach indicated that following the devaluation, many donors and institutions including the EU are willing to come and assist the country to meet its pressing needs.

Meanwhile the EU has revealed that several donor partners including the EU are preparing several mitigating packages to mitigate the effects of devaluation as they wait the resuption of budgetary support.

“Development partners including the EU have engaged to do our utmost to cushion the negative effects of devaluation,” said Skinnebach.

Several donor countries withheld their support in 2013 following the massive looting of money from government coffers.

The immediate past administration under the Democratic Progressive Party (DPP) worsened its plunder of public resources leading to many donors putting a plug to their support of the country.

It had to take President Chakwera’s economic prudence to restore the donor confidence.