Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline|
|01B - Support policies for short-term lending info_outline||
No estimate/amount: The Financial Stability Committee is meeting regularly to assess evolving risks to the financial and monetary stability. Da Afghanistan Bank or DAB (central bank) has intensified its monitoring of banks and indicated its readiness to provide liquidity as needed.
|01C - Forex operations info_outline||
No amount/estimate: (i) DAB is in discussions with money-service providers, who play a systemic role in financial transactions, to ensure uninterrupted services, including transactions in foreign currency, and to encourage enhancement of their remote services given closures; (ii) DAB remains focused on price stability and is committed to exchange rate flexibility, limiting its foreign interventions to preventing excessive volatility.
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate reductions|
|02B2 - Other policies to support long-term lending||
No estimate/amount: (i) The authorities increased the frequency of Financial Stability Committee meetings, enhanced the monitoring of early signs of liquidity stress, and reviewed banks’ business continuity plans; (ii) DAB has suspended administrative penalties and fees, postponed the IFRS-9 implementation to June 2021, and froze loan classifications at the pre-pandemic cutoff of end-February.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline|
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Health and income support||AFN40,700,000,000||USD517,207,927||
According to the mid-year budget revision to be submitted to parliament in September, authorities envisage a total of 2.9% of GDP for pandemic-related spending, with about 15% directed to health.
|05A - Health support||AFN6,200,000,000||USD78,788,431||
(i) As of 27 August 2020, The government has so far allocated AFN6.2 billion in the budget for emergency health needs, such as (a) establishing testing labs, including at border crossings, (b) boosting hospitalization and care capacity, and (c) procuring the most critical medical supplies.
|05B - Income support||AFN32,200,000,000||USD409,191,530|
|05B1 - Tax and contribution deferrals and policy changes||
(i) No amount/estimate: 20 March 2020, The government extended filing deadlines, initially to 3 April, now to 5 July for individual and business taxpayers; (ii) No amount/estimate: 20 March 2020, The government deferred the payment of taxes for all individuals and businesses for two months, until 20 May 2020.
|05B2 - Tax and contribution rates reduction|
|05B3 - Wage support and subsidies to individuals and households||AFN32,200,000,000||USD409,191,530||
As of 27 August 2020, the following amounts have been spent/included in the budget amendment: (i) AFN20.8 billion for the provision of social relief packages – cash transfers or in-kind – to support vulnerable households. Waived electricity bills of less than AFN1,000 for a family residence in Kabul for two months and paid utility bills of the past two months for 50% of households in Kabul; (ii) AFN2.8 billion for the provision of wheat and flatbread to IDPs and daily wage earners; (iii) AFN1.7 billion for a wheat purchase program; (iv) AFN6.9 billion to support farmers as well as other short-term laborers.
|05B4 - Subsidies to business|
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)|
|05C - No breakdown (health and income support)||AFN2,300,000,000||USD29,227,966||
27 August 2020, AFN2.3 billion in transfers to provinces to finance their COVID-19 responses.
|06 - Budget reallocation info_outline||
No amount/estimate: The government is working to identify nonessential spending that can be curtailed to create space for pandemic-related spending, including social relief package for the affected households and measures to prevent permanent damage to the Afghan economy.
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||AFN180,255,133,792||USD2,290,648,258|
|08A - Swaps info_outline|
|08B - International loans/grants||AFN180,255,133,792||USD2,290,648,258|
|08B1 - Asian Development Bank||AFN11,303,283,832||USD143,640,000||
(i) Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases - USD3 million; (ii) 11 May 2020, USD40 million Emergency Assistance for COVID-19 Pandemic Response; (iii) 3 June 2020, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) - USD0.07million; (iv) 13 July 2020, Addressing Health Threats in the Central, West, and East Asia Region - USD0.38 million; (v) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.10 million; (vi) 18 November 2020, Supporting Startup Ecosystem in the Central Asia Regional Economic Cooperation Region to Mitigate Impact of COVID-19 and Support Economic Revival - USD 0.05 million; (vii) 26 November 2020, Addressing Health Threats in the Central, West, and East Asia Region (Additional Financing) - USD0.04 million [update]; (viii) 6 December 2020, COVID-19 Active Response and Expenditure Support Program - USD100 million. [update]
|08B2 - Other||AFN168,951,849,960||USD2,147,008,258||
(i) 14 April 2020 - 13 Oct 2020, IMF Catastrophe Containment And Relief Trust-Grant Assistance For Debt Service Relief, SDR2.4 million (SDR0.729/USD); (ii) 2 April 2020, The World Bank approved a USD100.4 million grant for the Afghanistan COVID-19 Emergency Response and Health Systems Preparedness Project to help Afghanistan take effective action to respond to the threat posed by COVID-19 and strengthen its public health preparedness; (iii) The IMF approved Afghanistan’s request for emergency assistance in the amount of USD220 million under the Rapid Credit Facility; (iv) With the support of the World Bank, other development partners, and humanitarian agencies, the authorities are developing a social relief package-through cash transfers and, if impractical, in kind-to support food security among socially vulnerable households. On April 29, the government started providing free bread to about 2.5 million needy and poor people in Kabul. This amount is also reflected in item (ii) of Measure 5B3; (v) 7 May 2020, USD400 million grant from the World Bank to support the country in managing risks and uncertainties compounded by the COVID-19 crisis; (vi) 26 May 2020, USD20.6 million from USAID, broken down into: (a) USD7.1 million for health and IDA humanitarian assistance, (b) USD3.1 million in MRA humanitarian assistance for Afghan returnees, (c) USD10 million from redirecting existing resources to support Afghanistan's health response, (d) USD500,000 to procure COVID-19 prevention and control supplies for correctional facilities; (vii) 9 July 2020, USD200 million to help Afghanistan mitigate COVID-19 impacts and provide relief to vulnerable people and businesses. USD100 million comes from the International Development Association (IDA), the World Bank Group's fund for the poorest countries, and the balance from the Afghanistan Reconstruction Trust Fund (ARTF), managed by the World Bank on behalf of 34 donors; (viii) 4 August 2020, USD280 million for the COVID-19 Relief Effort for Afghan Communities and Households (REACH) Project, with USD155 million from the IDA, and the balance from the ARTF; (ix) 4 August 2020, USD100 million for the Emergency Agriculture and Food Supply Project (EATS), with USD55 million from the IDA, and the balance from the ARTF; (x) 14 August 2020, IMF staff and the Afghanistan authorities have reached a staff-level agreement on an economic reform program to be supported by a new three-and-half year USD364 million Extended Credit Facility (ECF); (xi) 28 September 2020, USD100 million from the World Bank to stabilize the financial sector and spur economic recovery; (xii) 2 October 2020, USD3.38 million from the 2nd tranche of the Catastrophe Containment and Relief Trust; (xiii) 6 November 2020, SDR259.04 million from the IMF under the Extended Credit Facility to support the country's economic reform program as it recovers from the pandemic.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) The government has taken steps to replace wheat imports lost due to border closures with purchases from Central Asia; (ii) On 15 July 2020, trade with India through Wagah border post in Pakistan resumed.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) Between March and April 2020, Border closures and suspension of international and domestic flights; (ii) Social distancing measures, including a three-week lockdown of Kabul (28 March 2020) and Ghazni (1 April 2020) and restricting daily movements to those deemed essential; (iii) Lockdowns in over 20 provinces, including Kabul and other cities, were extended for 3 weeks on 17 April; (iv) 6 June 2020, The government extended the nationwide lockdown for 3 more months, as well as mandating additional health precautions. As of November, this 6-month lockdown has been lifted, and both domestic and international travel has resumed. However, passengers will still need to carry a COVID-19 negative certificate.
|12B - Measures affecting business and workplace||
(i) 6 June 2020, The government extended the nationwide lockdown that had been in place since late March/early April for 3 more months. All public places are to remain closed, while public transportation facilities carrying more than 4 passengers are not allowed to travel. Restaurants and coffee shops are only allowed to carry out deliveries and take-outs. As of November 2020, this 6-month lockdown has been lifted.
|12C - Others||
(i) March 26, The government released over 10,000 prisoners to reduce the risk of mass infections in penitentiaries; (ii) As of November, the lockdown has been lifted. Public gatherings are now allowed, while educational institutions have reopened.