The United States has put a $350 million aid package to Malawi on hold, following clashes between police and protesters in the southern African country.

The Millennium Challenge Corporation, a U.S. government agency that assists developing countries, said Tuesday that it will review its partnership with Malawi.

The agency said as part of the review, it will consider whether to suspend or terminate assistance.

At least 18 people were killed last Wednesday and Thursday as police battled street protesters in three Malawian cities.

The MCC said Friday that it is concerned by authorities' use of force and restrictions on the media in reporting the demonstrations. It said the developments call into question Malawi's commitment to good governance.

The MCC is designed to reward developing countries that protect human rights and practice rule of law.

The Malawian demonstrators were protesting fuel shortages, rising prices and what they say are eroding civil liberties.

President Bingu wa Mutharika characterized the protests as an attempt to overthrow his government and has vowed to hunt down the leaders of the protests. He named the head of the opposition and Malawi's vice president as suspected organizers.

Britain recently cut economic aid to its former colony in the wake of a diplomatic disagreement with the Malawian government.

The dispute began after Mr. Mutharika deported Britain's envoy for describing the president in a leaked cable as “autocratic and intolerant.”