The International Monetary Fund is giving $17 million in credit to Afghanistan, following economic progress in the country. Despite ongoing security problems, the government has successfully balanced spending with fiscal sustainability, resulting to a stable currency, a decline in inflation, and a strong GDP growth forecast for the next two years. “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,” said IMF Deputy Managing Director Murilo Portugal. He added that Afghanistan has made “considerable progress” in debt rescheduling, and is under consideration for debt relief under the IMF and World Bank’s heavily indebted poor countries initiative. This new credit forms part of a three-year concessionary lending program worth $122 million.
Source: IMF Offers $17M Credit To Afghanistan, Sees Faster GDP Growth (Dow Jones)