Construction Companies Seek Standard Banking Services

Some representatives of private construction companies and Banks have gathered in Kabul on Sunday to find ways of accessing standard banking services saying despite of enormous construction development made in the past years in Afghanistan, still challenges on standard Banking services remain as obstacle.

Minister of Urban Development and Housing Sayed Sadaat Mansour Naderi said, “The private and Governmental Banks are having valuable trusts, they can provide long term 10 or 20 years of loans for the housing applicants and the construction companies and reverse they can gain more benefits from the services.”

Minister of Public works Mahmood Baligh has declared several issues as main barriers for the private construction companies, lack of cash, high rate of bank interests, no insurance.

He said, “Banks has been playing poor role in providing loans for the construction companies, amid the construction companies are supporting financially the construction development by their own money.”

Meanwhile members at Afghanistan Banks Association (ABA) have declared the main challenges which are no Banking guarantees and insecurity demanding the Government to in place a proper policy for accessing loans.

Chairman of the Afghanistan Banks Association Najeebullah Amiri said, “One of the main obstacles for giving loans in Afghanistan is to receive back the loans on the determined date, our National businessmen were blackmailed and their identities were misused, some individuals who were not holding business positions received loans from the Banks where it rose the risks of receiving loans from the Banks.”

Based on the estimation, the Afghanistan Banks Association has provided $ 42 billion loans that 208 million Afghani loans were given to the provide construction companies which indicates only 2 percent of financial supports.

Reported by: Lida Naizi