17.09.2014

Minister of Finance Rumen Porodzanov and Minister of Finance of Islamic Republic of Afghanistan Dr. Hazrat Omar Zakhilwal signed today an Agreement between the Government of Republic of Bulgaria and the Government of Islamic Republic of Afghanistan settling the Afghani government debt. The Agreement enabled the settling of debt arisen by virtue of three intergovernmental agreements in the 70s and 80s of the previous century whose repayment was stopped in 1991.

Since 2006 Islamic Republic of Afghanistan has been on the International Monetary Fund list of countries meeting the criteria for granting funds under the Poverty Reduction and Growth Facility. In 2010 it obtained a Heavily Indebted Poor Country (HIPC) status as a result of which the Paris Club creditors granted 83.8% reduction of its debt.

As a result of consultations held in 2013 in Sofia the two countries agreed for a reduction of 83.8% of the Afghani debt, amounting to USD 42.425 million which is granted as Official Development Assistance in priority sectors such as agriculture, infrastructure, health care and education. Thus Bulgaria is honouring its commitment within the framework of the international policy for development and cooperation. The Agreement signed today provides for repayment of the Afghani debt to the amount of USD 8.2 million in 20 half-year instalments for a period of 10 years.