WASHINGTON – The International Monetary Fund (IMF) yesterday approved a 42-month, US$370 million (RM1.53 billion) loan programme for conflict-ravaged Afghanistan as it tries to deal with the coronavirus pandemic.
The loan aims to help stabilise the country’s economy, shore up its Covid-19 response and catalyse donor support, said IMF in a statement.
The government’s economic programme has been set back by the pandemic, but Kabul has put in place policies to return to growth and reduce poverty, said IMF deputy managing director Mitsuhiro Furusawa in a statement.
However, “should downside risks, including from the pandemic and the security situation, materialise, the recovery could falter and financing needs increase”.
Under the extended credit facility, the government will receive US$115 million immediately, with the rest coming in instalments following semi-annual reviews of performance criteria covering economic policy and anti-corruption efforts, said IMF.
The fund projects that the Afghan economy will contract by 5% this year and rebound by 4% in 2021, but noted that “sustained donor support, steadfast reform implementation, and progress in combating corruption will be critical” to the programme’s success. – AFP, November 7, 2020
