71434
                       Republic of Malawi: Rapid Response Program


                                SUMMARY OF DISCUSSION

                              Meeting of the Executive Directors

                                          July 17, 2012


       Executive Directors approved the Rapid Response Program for Malawi comprising of
three operations: a Rapid Response Development Policy Grant; an Additional Financing for the
Irrigation, Rural Livelihoods and Agricultural Development Project; and an Additional
Financing for the Third Malawi Social Action Fund APL II in the total amount of SDR 99.60
million (US$150 million equivalent) on the payment terms and conditions set out in the
President’s Memorandum (IDA/R2012-0186).

      Directors supported the program and welcomed the Government’s commitment to achieve
and maintain macroeconomic stability and restore the functioning of a market based economy,
while mitigating the impact of the most vulnerable groups. In that light, Directors also
encouraged the long-term sustainability of reforms to address the imbalances in the economy and
improve governance. They also highlighted the importance of addressing the main supply-side
constraints, such as energy and access to finance, improving the business environment,
containing inflationary pressures, and maintaining a gender focus in the program. Finally,
Directors encouraged continued strong collaboration with the IMF and other development
partners.




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This summary is not an approved record.