Afghanistan central bank and ACGF sign cooperation agreement

Da Afghanistan Bank (DAB) and the Afghan Credit Guarantee Foundation (ACGF) have signed a cooperationmemorandum of understanding (MoU) aimed at strengthening the financial sector and expanding access to financial resources for small, medium and large businesses.

The agreement was signed during a ceremony at the DAB Supreme Council Hall, where DAB First Deputy Governor Sediqullah Khalid said such agreements create opportunities to provide suitable and diverse Islamic financial services to citizens and expand access to financing for small and medium-sized enterprises.

Khalid said that under the agreement, banks and financial institutions will initially receive technical and professional support. He added that five banks and one microfinance institution will receive grants worth around $1 million in the first phase to support financing for small and medium-sized businesses.

He said other banks and financial institutions that meet the required criteria would benefit from the grants and related facilities in later phases.

Khalid also said that attention would be given to facilitating the creation and financing of small businesses for Afghans returning from other countries.

Under the agreement, the two sides will cooperate on strengthening the financial sector, expanding access to financial resources for businesses, promoting Islamic financial services and building the capacity of financial institutions.

Technical and professional assistance, training programs and capacity-building opportunities will also be provided to banking and non-banking financial institutions.

Roger Thomas Piltzer, chairman of the ACGF Board of Trustees, also welcomed the agreement and stressed the importance of continuing and expanding cooperation with Da Afghanistan Bank.

The agreement aims to establish a framework for cooperation between the two sides to strengthen Afghanistan’s financial sector, expand access to Islamic financial services and provide financial resources for small and medium-sized businesses.