Da Afghanistan Bank (DAB), International Development Association (IDA), International Finance Corporation (IFC), Harakat Implement Credit, Collateral Registry in Afghanistan

Da Afghanistan Bank (DAB), the central bank of Afghanistan, recently implemented a credit infrastructure modernization project involving the establishment of Collateral Registry (CR) and Public Credit Registry (PCR) systems, which enable automation of loan processing by tracking information about clients, outstanding loans and assets pledged to back those loans. Financial institutions benefit from the systems with easier access to information that assists with risk assessment and risk management processes. Additionally, the modernized infrastructure allows small businesses and low-income borrowers to gain faster access to credit.

The International Development Association (IDA), an arm of the World Bank that provides interest-free credits and grants for programs in the world’s poorest countries; the International Finance Corporation (IFC), the World Bank Group member that offers financing and financial advisory services to businesses and governments in developing countries; and Harakat, a grant facility funded by the Department for International Development of the United Kingdom, provided financial support for the project.

As of June 2014, IFC has 184 member countries and reported total assets of USD 84.1 billion. IDA’s investments totaled USD 22.2 billion in 2014. Harakat received funding of GBP 30 million (USD 47 million) from the Department for International Development of the United Kingdom in 2008.

By Alíz Crowley, Research Associate

About Da Afghanistan Bank

Da Afghanistan Bank (DAB) is the central bank of Afghanistan. The objective of DAB is to achieve and maintain domestic price stability, foster liquidity and solvency, and create a stable, market-based financial system in the country.

About International Development Association

Established in 1960, the International Development Agency (IDA) is an arm of the World Bank that provides interest-free credits and grants for programs in the world’s poorest countries. Loans from IDA have repayment terms stretching from 35 to 40 years, including a 10-year grace period. IDA also provides grants to countries at risk of debt distress. In 2014, IDA investments totaled USD 22.2 billion. Since its establishment in 1960, IDA has provided approximately USD 293 billion to 112 countries.

About International Finance Corporation

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services, and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported total assets of USD 84.1 billion and total investment mobilization of USD 38.1 billion.

About Harakat

Harakat (formerly known as the Afghanistan Investment Climate Facility) is a grant facility that was launched in 2008 by the Department for International Development of the United Kingdom with funding of GBP 30 million (USD 47 million). Harakat aims to improve the business environment of Afghanistan and support job creation and poverty alleviation in the country.

Sources and Additional Resources

[1] World Bank, News, Modern Credit Infrastructure Allows for Quicker Loans

[2] Department for International Development, United Kingdom, Harakat: creating a better environment for business in Afghanistan

[3] Da Afghanistan Bank, About Us & Financial Statements

MicroCapital, March 17, 2015, World Bank’s International Development Association (IDA) to Loan $60m for Affordable Housing in Tanzania

MicroCapital, March 25, 2014, EBRD, National Association of Business Women of Tajikistan (NABWT), Government of Tajikistan to Host “Symposium of Women Entrepreneurs of Central Asia and Afghanistan”, Dushanbe, March 27 – 28, 2014

MicroCapital, January 13, 2014, World Bank’s International Development Association Donating $50m to Support Microfinance Investment Support Facility for Afghanistan (MISFA), Afghanistan Credit Guarantee Facility

MicroCapital Universe Profile: Da Afghanistan Bank

MicroCapital Universe Profile: International Development Association

MicroCapital Universe Profile: International Finance Corporation

MicroCapital Universe Profile: Harakat

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: