KABUL - In an attempt to support investment in Afghanistan, the state-owned bank - Banke Millie Afghan - has pledged to provide about $200 million USD in loans to Afghan industrialists.

Officials from Afghanistan Industries Agency (AIA) said that loans to industrialists will be granted in order for them to purchase raw materials and industrial machinery.

Banke Millie Afghan's pledge comes after a memorandum of understanding (MoU) was signed between the bank and AIA in Kabul on Sunday.

The AIA officials, who welcomed the move, said access to such loans was vital for the improvement and development of industries, products and investment in the country.

"Banke Millie Afghan decided to award loans to Afghan industrialists through two processes, Islamic banking system and common banking systems. They will also help them to get loans," said Sakhi Paiman, the head of AIA.

Banke Millie Afghan officials said they hoped to become a leading supporter of industries in Afghanistan through this initiative.

Financial deputy head of the bank, Ahmad Khusraw Zia, said they are committed to the move to support industrialists. They will also be charged a lower interest rate than that charged by other banks, he said.

AIA officials said the country's industries have been unable to compete with neighboring countries due to the absence of financial support over the past 14 years.

But officials believe the initiative will increase Afghanistan's production output and will create job opportunities for hundreds of individuals. (Tolonews)