IMF approves a $45m credit facility for Afghanistan
KABUL (Pajhwok): The International Monetary Fund (IMF) has approved a three-year Extended Credit Facility (ECF) arrangement for Afghanistan worth $44.9 millionto help raise growth by consolidating progress on the macroeconomic and structural fronts.
The IMF Executive Board’s decision means availability of about $6.2 million for immediate disbursement. A statement from the Fund said the remaining amount would be phased over the duration of the programme, subject to semi-annual reviews.
Mitsuhiro Furusawa, deputy managing director, said: “Afghanistan is undergoing a difficult political, securityand 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 programme supported under the Extended Credit Facility aims to consolidate recent gains on the macroeconomic and structural fronts, and catalyse donor support. It will focus on institution building, fiscal and financial reformsand measures to combat corruption.
He added: “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; and strengthen commitment controls.
“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,” he continued.
Furusawaexplained the reform agenda included strong anti-corruption measures and implementation of further reforms of the AML/CFT framework, which were critical to protecting financial stability, deterring graft and exiting the Financial Action Task Force’s monitoring process.
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