MALAWI: EU to provide budgetary support

[ This report does not necessarily reflect the views of the United Nations]

LILONGWE, 27 Oct 2004 (IRIN) - The European Union (EU) has rewarded the new Malawi government's commitment to poverty reduction by renewing budgetary support to the country.

An EU delegation, in Malawi to review economic progress made in the past two-and-a-half years, said on Tuesday it would provide US $42 million in budgetary support in the 2005/06 financial year.

Assistance was cut in 2001 over concerns with the then government's economic and governance record. The current administration of President Bingu wa Mutharika took over in May 2004, promising to fight corruption and improve living standards.

"The EU agreed with government to support reforms in areas of food security and agriculture, road infrastructure development, decentralisation and budgetary support," EU delegation member Philippe Darmuzey told a press conference.

"I hope in the next review, which will be in 2006, the performance of the government will be better, and the allocation of financial resources to government by the EU will be better as well," he added.

[ENDS]