The Bank-e-Mille Afghan (BMA) would issue loan amounting to $100 million to the Afghanistan Industrialists Association (AIA) under an agreement signed on Tuesday.
Ahmad Javid Wafa, the bank chief, said the loan with a five percent interest rate would be provided for development of the industry sector from one to five years.
“Under the Islamic Banking system, we will issue the one hundred million dollars loan for purchase of machinery for factories and more amount would be added if needed,” he said.
He said most of the loan would be offered for purchasing machinery, raw materials and development of factories.
Sakhi Ahmad Paiman, head of the AIA, welcomed the government’s step to support the industrial sector and said it was the first time that a state-run bank with a low interest rate had offered loan for five year term.
Abdul Rahman Faizan, deputy head of the Chamber of Industry and Mining, said: “One of the reasons our industry could not grow has been the lack of government support.”
He added the loan would help strengthen local factories and increase their productions.
