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IMF’s new loan for Afghanistan, talks to begin later in May

in Afghan Business

IMF’s new loan for Afghanistan, talks to begin later in May

The International Monetary Fund’s management has welcomed Afghanistan’s request for financial support.

The talks on the loan will be discussed later this month amid instability in the country.

“The Afghan authorities recently requested a Fund financial arrangement (Extended Credit Facility—ECF)… IMF management welcomes this request, and discussions on the new arrangement are slated to begin in May 2016,” the organization said in a statement Friday.

IMF said that its Staff-Monitored Program (SMP), tasked with addressing the country’s financial vulnerabilities and preserving its stability, was completed successfully.

“Notwithstanding this progress, Afghanistan’s economic situation remains very difficult. Security and political uncertainties and the drawdown of international troops, together with weak governance and institutions, have held back growth and employment, and recently contributed to increased emigration,” the statement further adds.

The IMF has expressed concerns over the deteriorating security situation and shortfall in donor aid.

According to IMF, Afghanistan’s real GDP growth is projected at 2% in 2016, only marginally higher than in 2015.

Afghanistan has requested for financials support in a bid to help address these difficult issues.

“The ECF would help tackle some of the challenges and thus assist in improving the conditions for sustainable growth and in catalyzing support from donors. IMF management welcomes this request, and discussions on the new arrangement are slated to begin in May 2016,” the statement added.



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