Microfinance: USAID guarantees $13.5m in loan

KABUL) on Wednesday announced id=”mce_marker”3.5 million in micro-loan guarantees to three Afghan financial institutions to increase access to credit for local small businesses.

The agreements were signed on September 25 at a ceremony in Kabul. The agencies receiving the US guarantees are the First MicroFinance Bank of Afghanistan, OXUS Afghanistan and FINCA Afghanistan, the agency said in a statement. 

“These agreements help reduce the risk of capital lending, enabling Afghan entrepreneurs to expand their businesses, creating jobs and contributing to economic growth in the country,” said Sepideh Keyvanshad, Acting USAID/Afghanistan Mission Director. 

The guarantees will provide capital to the microfinance institutions to allow extension of credit to borrowers who might otherwise not be able to obtain loans. USAID is using the guarantees to support the expansion of micro and small businesses in Afghanistan. 

Since 2011, USAID has committed to credit guarantees totaling over $23 million to provide increased access to capital for Afghan borrowers. Small- and medium-sized businesses typically use the loans to expand operations.

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