Harakats US$1.3 million support for Afghanistan Institute of Banking
Kabul ,December 3, 2009 -Harakat -Afghanistan Investment Climate Facility today approved a grant of US $1.3 million to support the capacity building efforts of the Afghanistan Institute of Banking and Finance (AIBF) for three years. The AIBF is a public-private partnership which has been established to provide world class training to the financial service providers in Afghanistan.
The financial sector in Afghanistan has grown significantly over the last five years. Loans have grown from US$ 18 million in March 2004 to US$ 1.2 billion in September 2009, while deposits have grown significantly from US$ 60 million in March 2004 to US$ 2.4 billion in September 2009. Additionally, other kinds of financial institutions, such as microfinance institutions, leasing, equity, and insurance companies have also started their operations in the country.
However, lack of human capacity is one of the key constraints for further development of the sector. The training provided by the AIBF is designed to alleviate this constraint. The AIBF has been established as a corporation under the Company Law of Afghanistan with three shareholders – Da Afghanistan Bank, the Afghan Bankers’ Association and the Microfinance Investment Support Facility for Afghanistan.
The AIBF is expected to commence classes in January 2010.
H.E. Abdul Qadir Fitrat stated that HARAKAT’s assistance to Afghanistan’s Institute of Banking and Finance will enable the AIBF to stand on a solid footing and continue its operations until it becomes financially self-sustainable. Further, it will contribute significantly toward capacity building in the financial sector both for men and women. At present financial sector lacks the necessary capacity to run the system efficiently.
Suleman Fatimie, CEO of Harakat started his statement by saying “The project aims to build capacity within the financial institutions and commercial banks to enable them deliver better financial services. In a highly competitive financial business environment, investing in employee training and education is investing in the future”.
Harakat is an independent, Afghan-managed organization that aims to improve Afghanistan’s business environment. Harakat provides grant funds to the private sector, government and civil society to implement activities to reduce or remove barriers that currently make it difficult to do business in Afghanistan.