LILONGWE (Malawi NewsNow) – As the Kwacha continue depreciating at alarming levels finance minister Goodall Gondwe is working to borrow a substantial amount of money in forex from Preferential Trade Area Bank popularly known as PTA Bank which to inject into the economy a move believed that will help to tame sharp depreciation of the kwacha and bolster foreign reserves.
This comes as Malawians continue demanding answers from authorities on why the economy is in a deep mess with leaders failing to quickly correct the situation.
Currently the Kwacha is trading well above K600 to a dollar, the highest in the history of the country’s economy a move worrying private sector and business persons in general, at the same time harming consumers of products and services.
The intention to borrow from the PTA Bank comes as last year government also did the same to borrow from external sources during the lean period to cushion the impact of the fall of the kwacha and the need for forex by the private sector for importation of raw materials for production.
The last year’s move to borrow well above US$400 from external sources has hurt the economy as all the proceeds from tobacco has gone to repay such a loan thereby leaving the country without forex.
Inside government sources have confided in us that finance Minister’s interventions with the PTA Bank are at an advanced stage and that a loan will be obtained to be repaid in two years time which is better than the last deal which was paid at once.
Ministry of finance Spokesperson could neither deny nor confirm about the development but said a number of interventions are being looked at to stabilise the Kwacha.
“You remember last year the minister facilitated the currency swap deal with some external monetary institution and it helped a lot so this year we just have to wait something may be or not come out”, said Msowoya.