The Central Bank of Afghanistan and the Afghan Credit Guarantee Foundation signed a memorandum of understanding to expand access to Islamic financial services and financing for micro, small and medium-sized enterprises. In the initial stage, the foundation will provide about USD 1 million in grants to five banks and one microfinance institution for MSME financing. Subsequent stages will extend grants and related facilities to banks and financing institutions that meet specified conditions, with particular attention to returnees seeking to establish small businesses. The agreement also covers technical support, professional training and capacity building for financial institutions, alongside measures to strengthen transparency, accountability and governance and improve guarantee mechanisms based on Islamic financial products.
2026-09-27Central Bank of Afghanistan
Central Bank of Afghanistan signs agreement to expand Islamic finance, with USD 1 million in initial grants
The Central Bank of Afghanistan and the Afghan Credit Guarantee Foundation agreed to expand Islamic financial services and MSME financing. The foundation will initially provide about USD 1 million in grants to five banks and one microfinance institution, with qualifying institutions and returnee entrepreneurs targeted in later stages.