The United Nations warned in a document that Afghanistan’s banking system could collapse within a few months Reuters.
After the Taliban took over, most of the country’s reserves were frozen.
The United Nations says it needs a way to fund the Afghan people without helping the Taliban.
The United Nations warned that Afghanistan’s banking system may collapse in the next few months. Reuters report.
A United Nations Development Program document seen by Reuters stated that Afghan banks urgently need help. If such help does not come, the negative impact on the Afghan people “will be huge.”
According to Reuters, the report stated: “Afghanistan’s financial and bank payment systems are in a state of chaos. Bank runs must be resolved quickly to improve Afghanistan’s limited production capacity and prevent the collapse of the banking system.”
Since the Taliban seized power in the country earlier this year, Afghanistan’s banking system has been particularly difficult. Foreign investment ceased and Afghanistan’s overseas assets were frozen to prevent the Taliban from accessing these assets.
Experts and NGOs are now warning the Afghan people will face dire consequences.
Abdallah al Dardari, the head of the United Nations Development Programme in Afghanistan, told Reuters that the Afghan people need a way to get the money, but it cannot be controlled by the Taliban.
“We need to find a way to ensure that if we support the banking industry, we will not support the Taliban,” he said.
“We are in such a terrible situation, we need to consider all possible options, and we have to think outside the box.”
The International Monetary Fund and the World Bank said they will suspend activities involving Afghanistan.
United Nations before warn Millions of people may go hungry in Afghanistan.
Head of one of the largest banks in Afghanistan September warning The country’s financial system is close to collapse.
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