IMF Staff Country Reports

Islamic Republic of Afghanistan : Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Afghanistan

Author/Editor:

International Monetary Fund. Middle East and Central Asia Dept.

Publication Date:

May 1, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The COVID-19 pandemic and measures to contain it have worsened the outlook for Afghanistan’s economy—already burdened by fragility, the ongoing conflict, and political uncertainty—and opened an urgent balance of payments gap in 2020, estimated at $857 million (4.5 percent of GDP). To help cover the gap, in the attached Letter of Intent (LOI), the authorities are requesting a disbursement of SDR 161.9 million, 50 percent of quota or about $220 million equivalent, under the Fund’s Rapid Credit Facility’s (RCF) “exogeneous shocks” window. The RCF disbursement will also open fiscal space for essential pandemic-related spending for health and social mitigation. In parallel, the authorities are seeking financing from other sources.

Series:

Country Report No. 20/143

Subject:

Central Banks Credit Economic reforms External sector Gross domestic product Rapid Credit Facility (RCF)