The International Monetary Fund said it is prepared to move quickly on a new credit program for Malawi, but warned that any agreement will depend on the government's commitment to implementing economic reforms.

IMF Resident Representative Nelnan Koumtingue said discussions are centered on supporting Malawi's National Economic Recovery Plan through an Extended Credit Facility, following talks that ended on June 18 without a deal.

"The process is evolving," Koumtingue said.

Malawi's finance ministry confirmed negotiations are continuing, saying both sides have agreed on a pathway forward but provided no further details.

The government's five-year recovery plan aims to stabilize the economy by tackling debt, strengthening public finances, fighting corruption and protecting vulnerable households during the restructuring period.

Malawi's last IMF program, worth $175 million, lapsed ​in May last year because the country did ​not ⁠complete a review within 18 months of its approval, meaning it received only an initial disbursement of $35 ⁠million.