The International Monetary Fund’s executive board approved on Friday a $370 million 42-month extended credit facility for Afghanistan.
The loan aims to support the country’s recovery from the coronavirus pandemic, anchor economic reforms, and catalyze donor financing, IMF said in a statement.
Afghan authorities’ response and expedient donor support have prevented a humanitarian crisis, however, the pandemic has set back progress toward self-reliance, IMF Deputy Managing Director Mitsuhiro Furusawa said in a statement.
“Should downside risks, including from the pandemic and the security situation, materialize, the recovery could falter and financing needs increase,” Furusawa said.
Under the facility, the government will receive $115 million immediately, with the rest coming in instalments following semi-annual reviews of performance criteria covering economic policy and anti-corruption efforts, according to IMF.
Estimates show that poverty rate especially in rural areas of Afghanistan has reached 67 percent.
Abdul Saboor Nariman, a spokesman for the Ministry of Economy, said that the cabinet approved $3.4 million for the fight against coronavirus.