KABUL - An International Monetary Fund (IMF) team has held conducted virtual discussions with Afghan officials on the first Extended Credit Facility (ECF) review.
A statement from IMF said on Friday the discussions were held in March-April. At the conclusion of talks, Azim Sadikov, the IMF team leader, said a staff-level agreement was reached between the two sides.
In the statement, Sadikov said: “The IMF team has reached a staff-level agreement with the Afghan authorities on the completion of the first review under the ECF arrangement. The agreement is subject to approval by the IMF Executive Board.”
The board is expected to consider the first review in early June. The review’s completion will make about $147 million available to Afghanistan to cover external and fiscal financing needs.
Following is the statement from the IMF team leader:
“The three-and-half-year ECF arrangement approved in November 2020 is supporting Afghanistan’s recovery from the Covid-19 pandemic, buttressing reforms to tackle structural weaknesses in the economy, and providing financing to enable priority spending. The ECF was also instrumental in catalyzing donor financing at the Geneva donor conference in support of Afghanistan’s reform and development.
“Afghanistan continues to face formidable challenges, with the precarious security situation hurting confidence and growth. The peace negotiations hold the promise of a resolution of the armed conflict paving the way for lasting economic development and prosperity. In the meantime, reform-oriented policies supported by donor grants and capacity development remain critical to lay the foundation for inclusive growth and poverty reduction and limit economic scarring from the pandemic. (Pajhwok)