WB resumes debt repayments in Afghanistan

KABUL (Pajhwok): The Ministry of Finance (MoF) says the World Bank (WB) is set to resume the disbursement of outstanding loans in Afghanistan, with nearly 11 million US dollars to be paid to companies in the first phase, starting today (Monday).

Following the return of the Islamic Emirate of Afghanistan (IEA) to power in 2021, several international institutions had suspended operations in the country.

This led to a halt to numerous development projects and left various firms with unpaid dues, the ministry said in a statement.

MoF said the World Bank reopened its office in Kabul, following continued engagement and negotiations between ministry officials and bank representatives.

The statement added the bank was fully prepared to commence the process of repaying its outstanding debts in Afghanistan.

The World Bank owes approximately $50 million to Afghan logistics and construction companies, based on verified data. This amount is to be disbursed in four installments, in coordination with MoF and allocated to the respective companies.

In the first phase, which began today, WB would directly release $10.8 million to eligible firms. The remaining $39.1 million will be paid in three subsequent phases via MoF.

MoF called the resumption of debt clearance by WB as a major financial development, hoping it would contribute to the re-launch of stalled development projects, generate job opportunities and yield positive outcomes for the national economy.

kk/mud