Strengthening Afghanistan’s Financial Intermediation

active

Project DescriptionTo achieve the PDO the project will provide direct support to Da Afghanistan Bank (DAB), including the Afghan Deposit Insurance Corporation (ADIC), and Afghan Credit Guarantee Foundation (ACGF) and indirect support to Participating Financial Institutions (PFIs) (e.g. banks, microfinance institutions) and micro, small and medium enterprises (MSMEs). The key activities to this end are as follows: i) capital contribution to ACGF enabling scaling up partial credit guarantees to PFIs to increase lending to MSMEs and related technical assistance; ii) matching grants program to SMEs to retrofit and retool their businesses and related technical assistance; iii) technical assistance to ADIC towards development of legal and regulatory framework for deposit insurance, related capacity building, and capital contribution to the deposit insurance fund; iv) modernization of DAB’s information technology infrastructure; and v) technical assistance to DAB to increase institutional capacity for financial system regulation and oversight.