U.S. Ambassador Ronald Neumann and Afghan Finance Minister Anwar-ul Haq Ahadi signed the agreement in a ceremony witnessed by Afghan President Hamid Karzai in Kabul.
The funds, which are to be distributed over a five-year period, are to be directed towards Aghanistan's health, education, and economic sectors as well as the country's overall democratic development.
The Afghan finance minister said that the grants will probably exceed $5 billion, and include $500 million in grants for this year.
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