The European Union-EU has said it will sign a new financial agreement with Malawi before the end of this year.

The EU was in a three-year financing agreement with Malawi which expired in 2011and was not renewed due to disagreements with the late President Bingu wa Mutharika administration over deteriorating rule of law, democracy, good governance and human rights.

EU Leader of Delegation Ambassador Alexander Baum told the media that the union’s board is currently holding talks to ensure that the new agreement is signed soon so that a 14 million euro budgetary support is disbursed before the end of the year.

“We are hopeful that a new financing agreement will be signed by the end of this year so that the funds will be disbursed shortly after before the end of this year,” said Ambassador Alexander Baum.

“The EU is hopeful that this will be done very soon and that the 14 million euros, (K5.6 billion) budgetary support will be disbursed to help finance Malawi’s financial blueprint,” added Ambassador Baum.

The EU is in the Common Approach to Budgetary Support-CABS, a group of donors who support Malawi’s budget.

Currently the World Bank and African Development Bank have already made their contributions to the budget in the early part of the 2012-2013 national budget.

“Norway and Germany are currently reviewing their packages and will hopefully come out soon on their stand,” said the EU leader of delegation to Malawi.