European Union has disclosed that it will hold to its budget support due to the public looting of funds also known as cashgate at capitol hill in Lilongwe.

The remarks were made just after EU ambassador Marchel Germann, was giving his letters of credence to President Peter Mutharika on Monday in Lilongwe at the Kamuzu Palace.

“In terms of budget support, we are having a dialogue with the government of Malawi. I think as far EU is concerned the option of budget support remains on the table. We just need see restoration of confidence in public finance management systems of the country. There will only be budget support if the circumstances are there,” he said.

Commenting on the recent cashgate report which names suspects, Germann said it is a good thing that progress is being made and that those who looted the public coffers are being brought to the book.

“It is a good thing because this issue is of interest to all Malawians. I believe it’s very important that government and development partners work together to restore confidence in the public finance management system. We are working closely with the Minister of Finance to achieve this and we will continue to do so,” Germann said.

He said the EU is Malawi’s largest trading partner as nearly a quarter of Malawi’s exports find their way to Europe besides being one of the country’s largest donors.

“In 2013 the EU contribution to Malawi was €80 million. For 2014-2020, the overall envelope available for Malawi is projected to be close to €800 million,” he said.

President Mutharika also received letters of credence from ambassador from Norway Kikkan Haugen, ambassador from Ireland Aine Hearns and ambassador from Egypt Mohamed Maher, who expressed the zeal to work with the government for the betterment of the country.