Afghan farmers and agricultural producers will receive loans following the signing of a $ 6 million agreement between the Afghan government and microfinance institutions.
The agreement was signed between the Ministry of Agriculture, Irrigation and Livestock of Afghanistan (MAIL) and the First Micro-Finance Bank of Afghanistan and Afghan Rural Finance Company.
According to a statement from MAIL, the funds were prepared by the Agricultural Development Fund (ADF) and the agreement was signed by the Minister of Agriculture, Irrigation and Livestock Asadullah Zamir with representatives of the micro finance institutions.
The loans will be distributed in the current solar year, 1395, through microfinance institutions, the statement said, adding that farmers, small entrepreneurs and agricultural producers will receive the loans.
The statement added that the loans will help farmers and producers of agricultural products to produce, process and package their products according to international standards.
At least 3,000 farmers will be covered by part of the loans to be distributed by the First Microfinance Bank of Afghanistan and the rest will be covered by the Afghan Rural Finance Company.
According to MAIL, the funds will help the agricultural sector to purchase standard technical equipment to develop the sector.
The Agricultural Development Fund (ADF) has provided loans worth AFN 4,429,000,000 to 35,000 farmers and agricultural sector activists since 2010, covering 33 provinces.