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Malawi seeks $500M in trade financing to ease fuel crisis, sparking debate over risk vs. recovery.
Malawi’s president proposes a $500 million Letter of Credit to ease a fuel shortage, using international trade finance backed by sovereign guarantees and expected export revenues rather than immediate foreign exchange reserves.
The plan aims to restore credibility with global banks, reopen trade lines, and stabilize the economy while reforms in tobacco, mining, and governance take effect.
A debate persists over whether the approach is a pragmatic bridge to recovery or a risky gamble without confirmed forex coverage.
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Malawi busca $ 500 millones en financiamiento comercial para aliviar la crisis de combustible, provocando un debate sobre el riesgo frente a la recuperación.