FINANCIAL SECTOR DEVELOPMENT (WG1), 5TH MEETING

On Thursday, March 11, 2021, the first working group of the PriSEC Committee held its fifth working group meeting at Khybar Hall of the Ministry of Finance. The meeting was attended by esteemed representatives from the Ministry of Finance, Da Afghanistan Bank, Afghanistan Women Chamber of Commerce and Industries, Afghanistan Small Loans Association, Afghan Banks Union, General Directorate Takaful and Insurance, Capital Star Insurance Company, Ministry of Public Health, First Vice President of I.R.A and the PriSEC Committee.

 

First of all Mr. Abdul Habib Zadran, Deputy Minister of Finance of the Ministry of Finance welcomed the members of the meeting. Then, the technical advisor of the PriSEC committee, Mr. Zarbat Rostamkhel, provided information on the progress of reforms since the previous meeting of the working group.

 

The following topics were discussed at the meeting:

– The few opinions that are available on the procedure and the mechanism of fire insurance. At the time of implementation of this plan, all the opinions of the mentioned sectors should be included in the fire insurance procedure and the implementation of this plan should be done in the mutual agreement. The term (mandatory fire insurance) mentioned in the plan was not accepted by the three sectors and it was removed from the plan.

– Agreements and developments on key activities to strengthen the real estate pricing industry in the proposal require funding. The government can cooperate in the legal cases of this project, but in the standards section, the cooperation of the donor company is needed. The Union of Banks also submitted the proposal to a consulting firm to work on pricing standards.

– The latest version of the agreement on the transfer of citizenship pact accounts from the central banks to commercial banks has proposed amendments in two articles. These amendments have also been shared with the Treasury Department of the Ministry of Finance and related institutions.

 

At the end of the meeting, the problems of the Afghanistan Micro Finance Association requested PriSEC Committee to cooperate. The Micro Finance Association is under threat from some locals in Samangan province; People are campaigning against promoting banking products and services (interest system) and have sent several warning letters to members of the Afghanistan Micro Finance Association (AMA). The association asked PriSEC Committee to cooperate in order to gain the support of the officials of Samangan province so that they could continue their activities. The co-chairs of the first working group suggested that the PriSEC Secretariat share this issue with the Samangan provincial official and the local administration, and ask them to cooperate with microfinance companies in the province.

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