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Thursday, 12 April 2007

Malawi gets US$22 million ADF loan for economic reforms

Dakar, Senegal 04/12 - The Board of Directors of the African Development Fund (ADF), an arm of the African Development Bank (AfDB) Group, has approved a US$22 million loan to support the implementation of Malawi`s poverty reduction programme.

The Bank said in a statement Wednesday, the loan would be used to reinforce economic reforms and good governance policies, and strengthen public financial management.

"The Poverty Reduction Support Loan (PRSL) is an operation to align the assistance strategies of the Bank Group and other donors with national priorities as articulated in the Millennium Development Goals (MDGs)," the Bank said, adding that the operation had been designed to fully integrate and harmonize with the joint donor and government Common Approach to Budget Support (CABS) process.

It noted that Malawi`s economic reform effort "has gathered momentum in recent years and there is a more determined and coherent approach to the daunting task of poverty reduction," adding: "There has been dramatic improvement in macroeconomic management."

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