The claim that Malawi and the IMF mutually agreed to pause the ECF program until further notice is FALSE.
Claim: The government of Malawi declared on May 15, 2025, that it and the International Monetary Fund (IMF) had reached a mutual agreement to put the $175 million Extended Credit Facility (ECF) Programme on hold and let it expire until further notice.
A statement issued by the Ministry of Finance and Economic Affairs indicated: “The Ministry of Finance and Economic Affairs wishes to inform the General Public that, effective immediately, the Government and the International Monetary Fund have mutually resolved to allow the Extended Credit Facility Program to lapse until further notice”.
Verdict: FALSE.
Methodology: This fact-check is based on an analysis of official statements from the International Monetary Fund (IMF) and reports quoting the Malawian Ministry of Finance and Economic Affairs.
Evidence and Analysis: The Extended Credit Facility (ECF) for Malawi, approved on November 14, 2023, was aimed at restoring macroeconomic stability in the country. The programme intended to support Malawi’s efforts towards sustainable, poverty-reducing growth.
The Malawian Ministry of Finance and Economic Affairs announced that the government and the IMF had “mutually resolved to allow the Extended Credit Facility Programme to lapse until further notice”.
The Ministry’s statement suggested this resolution followed discussions with the IMF during the Spring meetings in Washington D.C. It further noted that the program faced exogenous shocks, making it difficult to achieve increased revenue and enhanced production.
Contrary to the claim of a mutual agreement to let the programme lapse, the IMF clarified the status of Malawi’s ECF programme. According to the IMF, “In accordance with IMF financing policies for low-income countries, the programme automatically terminated on May 14, 2025, as no review has been completed over an 18-month period.”
News reports also confirmed this stance from the IMF.
The core discrepancy lies in the reason for the ECF program ending. The Malawian government portrayed it as a “mutual resolve to allow the program to lapse”, implying a joint, proactive decision to pause. However, the IMF’s statement indicates an “automatic termination” due to the procedural requirement of completing a review within an 18-month timeframe, which did not occur.
Conclusion: The claim that Malawi and the IMF mutually agreed to pause the ECF programme until further notice is FALSE. The IMF’s official communication states that the ECF programme automatically terminated on May 14, 2025. This was a consequence of no programme review being completed within the stipulated 18-month period, as per IMF financing policies for low-income countries.
While the Malawian government’s communication framed the event as a mutual resolution to let the programme lapse, the IMF’s explanation points to an automatic termination based on established policy.
Sources used:
https://www.imf.org/en/Countries/MWI/malawi-qandas
https://www.imf.org/en/About/Factsheets/Sheets/2023/Extended-Credit-Facility-ECF
https://www.imf.org/en/Countries/MWI
Fact-checked by Collins Mtika of the Centre for Investigative Journalism Malawi.
