Reuters - The International Monetary Fund on Monday approved a loan arrangement of about $119 million for Afghanistan to help fight poverty.

Afghanistan will receive an initial disbursement of $19 million under the three-year Poverty Reduction and Growth Facility (PRGF), the IMF said in a statement.

The PRGF, the IMF's concessional lending facility for poor countries, is designed to support Afghanistan's economic program through March 2009, the IMF said.

The IMF hailed Afghanistan's economic performance, citing rapid growth and declining inflation. It also noted the government in Kabul had implemented key structural reforms in fiscal and monetary policy.

"These achievements, carried out in an extremely challenging environment characterized by lingering insecurity, poor infrastructure, and weak institutions, have paved the way for a comprehensive three-year reform program to be supported by a Poverty Reduction and Growth Facility arrangement from the Fund," said IMF Chairman Agustin Carstens.