The Executive Board of the International Monetary Fund (IMF) completed the first review of the arrangement under the Extended Credit Facility (ECF) for Afghanistan.
The completion enables the release of SDR 4.5 million (about $6.2 million), bringing total disbursements under the arrangement to SDR 9 million (about $12.4 million). The Executive Board’s decision was taken on a lapse-of-time basis. The ECF arrangement for SDR 32.38 million was approved on July 20, 2016.
In completing the review, the Executive Board also approved the authorities’ request for modification of two sets of performance criteria: first, the exclusion from the zero ceiling on non-concessional borrowing of two loans from the Islamic Development Bank to finance an important infrastructure project; and second, modification of three performance criteria, approved by the Executive Board in July 2016, reflecting updates to the macroeconomic framework and methodological changes affecting the monetary variables.
Programme implementation through end-December 2016 has been satisfactory, despite the challenging security situation. All quantitative performance criteria and indicative targets were met. On structural reforms, three out of five benchmarks were met, and all requirements for one of the remaining two benchmarks were implemented with a delay.