September 28, 2020— The World Bank Board of Executive Directors today approved a $100 million grant to help Afghanistan strengthen financial sector stability and increase access to finance for smaller enterprises in its efforts to accelerate recovery from the impacts of the COVID-19 pandemic.

 Funded by the International Development Association the Strengthening Afghanistan’s Financial Intermediation (SAFI) project, will enhance capacity of Afghanistan’s central bank, Da Afghanistan Bank (DAB), for financial system regulation and supervision, including by strengthening deposit insurance, financial infrastructure (e.g. public credit registry and collateral registry) and modernizing DAB’s information technology. This will strengthen financial system stability and facilitate financial intermediation.

 The project will also help the Ministry of Finance facilitate access to finance for micro, small and medium enterprises (MSMEs), including women owned and/or operated businesses, through risk-sharing, matching grants, and technical assistance.