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Lesson
The validation concurs with these issues and would also add that uncertainty remains regarding the Afghanistan private sector‘s overall ability to absorb credit even when available. Another uncertainty is AIB‘s ability to make up, through increased regular lending to private customers and investing in alternative assets overseas, for the inevitable loss of special situations of the sort (e.g. a sharp reduction in the US army deposits), which had provided AIB some measure of its financial success vis-à-vis very wide interest spreads gained by investing idle US Army cash balances in 12+%.

Project Number: 37903-014
Project Name: Equity Investment in Afghanistan International Bank
Report Date:
Lesson
Need for adequate advisory services to help prepare required legal and regulatory changes to speed up program implementation. The program also shows the benefits of integrated approaches to microfinance development support that promote capacity development of MFIs in conjunction with necessary reforms in the underlying policy environment.

Project Number: 33040-013, 33040-023
Project Name: Microfinance Systems Development Program [Loan 2000-2001-TAJ]
Report Date: