Malawi. European Union considers resuming direct state budget support

Malawi. União Europeia pondera retoma do apoio directo ao orçamento do Estado

The Ambassador of the European Union in Malawi, Rune Skinnebach, acknowledged the need to resume support to the Malawian state budget, and recalled that this aid comes from the contribution of the European people.

Rádio Moçambique reports that Skinnebach explained that there are a number of eligibility criteria that must be met, which include good debt management and sound financial management, in addition to signs of progress.

According to the national broadcaster the Head of European Union diplomacy in Malawi, said that corruption is hindering economic growth because investors are afraid to bet on Malawi.

He acknowledged, however, that since the country's largest financial scandal was recorded in September 2013, Malawi has made progress in managing public finances, but there is still a need for a full assessment before direct budget support resumes.

The EU and other donors, under the Common Approach to Budget Support, stopped their aid to Malawi in September 2013.

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