06:56 ET<\/span><\/span><\/p>\nThe UK has cut direct aid to Malawi as relations worsen following a diplomatic spat earlier this year in which each country expelled the other’s envoy.<\/p>\n
Last year, the UK gave \u00a319m ($30m) in budgetary support to Malawi.<\/p>\n
Fearing aid cuts, Malawi recently passed an austerity budget which did not include any foreign assistance.<\/p>\n
The UK envoy was told to leave after he was quoted in a leaked cable as saying President Bingu wa Mutharika does not tolerate criticism.<\/p>\n
Mr Mutharika recently explained his decision to expel Fergus Cochrane-Dyet by saying he would not accept insults just because Britain was the country’s largest aid donor.<\/p>\n
In a statement, the UK’s Department for International Development said Malawi’s government was suppressing demonstrations and also criticised some of Malawi’s economic policies.<\/p>\n
Malawi is one of the poorest countries in the world, with an estimated 75% of the population living on less than $1 (60p) a day.<\/p>\n
The UK recently expressed its disappointment with Malawi and reduced aid after the government purchased an extravagant presidential jet.<\/p>\n
However, the UK is continuing to give Malawi other aid – which does not go through the government – worth about \u00a390m ($145m) over the next year.<\/p>\n
The International Monetary Fund (IMF) has also cut aid to Malawi, which used to rely on donors for 40% of its budget.<\/p>\n<\/div>\n<\/p>\n
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