Central Bank Lifts Restrictions on Bank Guarantees Linked to Former Government Projects

DID Press: Central bank of Afghanistan has announced the removal of restrictions previously imposed on bank guarantees related to projects and contracts from the former Afghan government period.

According to the central bank, the move was made to support economic activity, facilitate private sector operations, and improve the overall investment climate in the country.

In an official statement, the bank said the decision aims to strengthen confidence between financial institutions and economic actors while removing obstacles affecting implementation of financial and contractual obligations.

Under the new policy, bank guarantees associated with previous government projects — many of which had faced limitations in execution or recognition — will once again be considered valid and enforceable.

Central bank officials stated that the measure could help resolve a portion of the legal and financial disputes facing companies and contractors, while also accelerating completion of delayed or unfinished development projects.

Authorities added that restoring the credibility of these guarantees would improve capital circulation in the market and contribute to broader economic activity.

The statement further emphasized that the central bank seeks to reinforce stability in the banking sector and create conditions that allow the private sector to participate more confidently in economic and development projects.