$50m grant to improve access to credit
KABUL (Pajhwok): The Ministry of Finance on Saturday signed a $50 million grant to support the government’s efforts to improve access to credit for micro, small and medium enterprises.
Under the Afghanistan Access to Finance Project, $32 million will be provided to support the microfinance sector and scale up the “Targeting the Ultra Poor” programme that provides technical and financial support to poorest households.
The remaining id="mce_marker"8 million will support the expansion of the Afghanistan Credit Guarantee Facility that provides partial risk guarantees to loans issued by commercial banks and microfinance institutions to small and medium enterprises.
“Small and medium enterprises provide jobs and livelihoods for the underprivileged sections of the population and make valuable contribution to growth and economic development,” said Finance Minister Dr. Omar Zakhilwal.
World Bank Country Director Robert Saum said: “Today’s support reconfirms the World Bank Group’s continued assistance to Afghanistan, as the country takes over increasing development and security responsibilities from the international community under ongoing transition.”
The Afghanistan Access to Finance Project will be implemented by the Microfinance Investment Support Facility for Afghanistan (MISFA) and the Afghanistan Credit Guarantee Facility.
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