IMF recommends $129 million loan to Afghanistan

AP News
|
Posted: Oct 06, 2011 4:51 PM
IMF recommends $129 million loan to Afghanistan

The International Monetary Fund has reached a tentative agreement with Afghanistan for a three-year, $129 million loan to support government economic reforms after similar funding was suspended over a bank crisis.

The IMF said Thursday that Afghan authorities had made "important progress" in managing the crisis at the Kabul Bank, which nearly collapsed last year because of mismanagement and questionable lending. In June, the IMF stopped an expected $70 million reconstruction payment to Afghanistan in a show of international displeasure over the handling of the bank crisis.

The bank is now under the control of Afghanistan's central bank and two former executives have been arrested for allegedly bilking the bank of hundreds of millions of dollars. The IMF board will consider the new loan in November.