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Afghanistan agrees over extended credit facility

AT-KABUL: The Ministry of Finance announced that government of Afghanistan had reached a three-year agreement with the International Monetary Fund (IMF) for an Extended Credit Facility (ECF).

The Finance Ministry in statement said this agreement comes after a successful nine-month Staff Monitored Program, which was completed in April 2016. Under the ECF Afghanistan will have access to a credit facility of $ 45m should it require to use to address economic shocks.

“Structural reforms for private sector development will support the government’s anti-corruption efforts and fiscal reform agenda. This includes reforms in revenue collection and strengthening public financial management to make public spending more efficient “said.

The press statement added that policies to preserve macroeconomic and financial stability will reduce fiscal and external imbalances to prepare for an Afghanistan that is less reliant on donor aid.

According to the statement the next step for the IMF Executive Board is to approve the agreement on 20 July 2016.This is great news for Afghanistan and will be a big boost for the country from aid-reliance toward self-reliance. The ECF will help us tackle economic challenges and will bring forward the sustainable economic growth.

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