SFD CONFIRMS $150 MILLION FOR AFGHANISTAN

C O N F I D E N T I A L RIYADH 000136 SIPDIS DEPT FOR NEA/ARP E.O. 12958: DECL: 01/30/2020 TAGS: EAID ECON PREL SA AF SUBJECT: SFD CONFIRMS $150 MILLION FOR AFGHANISTAN Classified By: Ambassador James B. Smith for reasons 1.4 (b) and (d) ¶1. (C) On the sidelines of a January 30 meeting at the Saudi Fund for Development, Mohammad Al-Arifi, the Fund's technical director for Asia, confirmed to Econoff that the SAG would be extending an additional $150 million in aid to Afghanistan. He said this aid would come in the form of soft loans for development projects and that it would be administered by the Fund. (Note: SFD soft loans to Afghanistan feature the most lenient terms of any loans the SAG extends, with a 10-year grace period, a 40-year repayment time frame, and a 2 percent annual service charge. End note.) ¶2. (C) Comment: Based on past experience with the SFD, it is likely that, having announced this aid, they will now wait for the GOA to suggest projects for the SFD's consideration. We would welcome any encouragement that can be given to the GOA to offer such projects to the SFD to speed up Saudi aid disbursement. Additionally, if Embassy Kabul can provide us with the details of projects the GOA puts forward to the SFD, we can encourage the SFD to consider them expeditiously on this end. SMITH