Afghanistan’s Secured Lending Framework Ranked first in the Middle East and North Africa (MENA).
With the creation of the effective legal regime for secured transactions and the launch of electronic Collateral Registry, IFC ranked Afghanistan, the first country in the Middle East and North Africa (MENA) region that introduced a modern secured lending framework.
“Effective secured lending regime is expected to strengthen financial institutions that will be able to ensure a more effective portfolio diversification and benefit from greater market competition as well as contributes to more business and investment in Afghanistan”, said Noorullah Delawari, Governor of Da Afghanistan Bank, speaking at a press conference on 31 July 2013. Mr. Nesar Ahmad Yosufzai General Director of PCR department of Da Afghanistan Bank has stated that; “Da Afghanistan Bank (DAB) has established a new, fully electronic, Collateral Registry based on the Secured Transactions Law on Movable Property in Banking Transactions and Regulation adopted in 2010, conforming to international best practice. The Registry has all the requirements necessary to provide an effective and transparent, national collateral registration system. The registry has two main purposes. First, to notify third parties of the potential existence of a charge. Second, to establish the priority of a charge based on the date and time of the registration. He has also thanked World Bank, IFC and Harakat for their continuous support.