MUTHARIKA ASSUMES AID TO RESUME

UNCLAS LILONGWE 000649

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EAID EFIN ECON PGOV PREL MI
SUBJECT: MUTHARIKA ASSUMES AID TO RESUME

REF: LILONGWE 614


1. (U) Upon arrival from the African Union Summit in Addis
Ababa, President Bingu wa Mutharika reportedly told the media
on July 9 that the International Monetary Fund (IMF) had
written to donor governments, instructing them to resume aid
because the Fund was pleased with Malawi's renewed commitment
to economic reform. Indicating that "dollars should come in
the next 14 days or so," Mutharika reportedly said the GOM
"sees no reason why the British, European Union, and other
donors should not give us resources."


2. (SBU) Referring to a meeting with British Minister of
African Affairs Chris Mollen, Mutharika said that Mollen
supported resumption of aid to Malawi and that Malawi would
receive "a lion's share" of the new aid the British
government has promised Africa countries. Press Officer at
the British High Commission (BHC) in Lilongwe told poloff
that no such decision had been made and that the BHC planned
to have a correction printed.

COMMENT
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3. (SBU) The President's statements, while possibly a product
of sloppy journalism, demonstrate the GOM's underlying
assumption that IFI and direct budgetary support will resume
in the very near future. The IMF team arrives on June 14 and
will present its findings at the end of its two-week visit.
We find President Mutharika's certainty that aid will soon
resume to be a useful political stance with no clear economic
underpinning.
RASPOLIC