IMF Offers $17 Million Credit To Afghanistan, Sees Faster GDP Growth
Dow Jones
03.09.2007
The International Monetary Fund on Wednesday offered a $17 million credit to Afghanistan, citing economic progress despite the country's continued security problems.
"Real GDP (gross domestic product) growth is expected to accelerate in 2006- 07, with even stronger growth likely in 2007-08 owing to a rebound in the agricultural sector," IMF Deputy Managing Director Murilo Portugal, said in a prepared statement. "Inflation has declined and is targeted to remain low."
The exchange rate for the national currency, the Afghani, has been stable, and Afghanistan's government is balancing the country's spending needs with fiscal sustainability, Portugal said.
Afghanistan has made "considerable progress" negotiating a rescheduling of its debt to Paris Club creditors, and it may be considered for debt relief under the IMF and World Bank's heavily indebted poor countries initiative, he said.
The new IMF credit is being made available under a three-year, $122 million concessionary lending program that the Fund's board approved last June.
