English | دری

IMF approves a $45 million Extended Credit Facility Arrangement to support Afghanistan

in Afghan Business

IMF approves a $45 million Extended Credit Facility Arrangement to support Afghanistan

The Executive Board of the International Monetary Fund (IMF) today approved a three-year Extended Credit Facility (ECF) arrangement for the Islamic Republic of Afghanistan for US$44.9 million to help raise growth by consolidating progress on the macroeconomic and structural fronts and catalyzing continued support from donors.

Following the Board’s decision, about US$6.2 million is available for immediate disbursement; the remaining amount will be phased in over the duration of the program, subject to semi-annual reviews.

Following the Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:

“Afghanistan is undergoing a difficult political, security, and economic transition. Against this background, the authorities’ successful completion of the 2015 staff-monitored program has provided the needed track record for a financial arrangement with the Fund. The authorities’ program supported under the Fund’s Extended Credit Facility aims to consolidate recent gains on the macroeconomic and structural fronts, and catalyze donor support. It will focus on institution building, fiscal and financial reforms, and measures to combat corruption. These reforms will help lay the foundation for private sector development, in line with the goal of Afghanistan’s forthcoming National Development Framework.

“On the fiscal side, the program aims to raise revenue and reduce reliance on aid through tax administration and policy reforms; improve the formulation, execution, and reporting of the budget; ensure a pro-growth re-composition of public spending over time; and strengthen commitment controls and cash management.

“The program envisions bolstering financial stability and the central bank’s regulatory and supervisory frameworks to address remaining financial risks, including the need to complete the resolution of the 2010 Kabul Bank crisis.

“The reform agenda also includes strong anti-corruption measures and implementation of further reforms of the AML/CFT framework, which are critical to protecting financial stability, deterring corruption, and exiting the Financial Action Task Force’s monitoring process.

“The program will support a policy mix that aims to preserve macro-financial stability by strengthening fiscal and external balances, keeping inflation low, and maintaining exchange rate flexibility and strong buffers.

“In view of the challenging circumstances, full ownership of the program and buy-in from stakeholders will help mitigate implementation risks and raise the likelihood of program success.”

Related Articles

Over 400 public administration students serving as government interns this fall

This fall, 441 bachelor students from public administration faculties around the country managed to secure internship positions in government bodies

Afghan female entrepreneurs in the US for mentoring

By Brianna Bailey (The Oklahoman) Female entrepreneurs from Afghanistan and Rwanda are in Oklahoma City this month as part of

Afghan businessmen complain of extortions on highways

A number of businessmen have complained that local officials and  powerful figures force them to pay up to 150,000 AFN

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.