KABUL: After recent development in Afghanistan’s banking and financial sector, the International Monitory Fund (IMF) is willing to issue a $323 million loan to Afghanistan.
Da Afghanistan Bank (DAB) governor told a press conference here that over the past one year, the Afghan government achieved all macroeconomic goals such as controlling inflation, increasing revenue and saving monitory treasures.
No problems could be seen in the country’s banking system and there were specific laws which could be enforced on banks, he said.
“Inflation in March of this year was 3.20 percent which is acceptable. We are in a situation in which such inflation rate is not a matter of concern. In addition to that, we have more than $ 7.4 billion in reserves equal to eight months imports,” he said.
The economic growth rate in the past year was 0.9 percent while the growth rate in the current year was expected to be two percent, he said, calling it good in the face of security and economic problems facing the country.
While considering the government’s achievements, IMF is ready to provide $323 million in loan to Afghanistan for a period of two to four years, he said. At the beginning, Afghanistan would get 75 percent of the loan and the rest would be released later, he said.
The International Monetary Fund will hold talks with Kabul on a new loan later in May.
The IMF on Friday welcomed Afghanistan’s request for financial support and would discuss it later this month.
“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.
