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Financial, banking payment system of Afghanistan on verge of collapse, - UN

Source : 112 Ukraine

As Afghanistan is on the brink of starvation, financial problems will be extremely difficult for its people
17:00, 22 November 2021

UNHCR

Afghanistan's financial and banking payment system is collapsing, the United Nations stated, Reuters reports.

"Afghanistan's financial and bank payment systems are in disarray. The bank-run problem must be resolved quickly to improve Afghanistan's limited production capacity and prevent the banking system from collapsing," the UN report said.

It says the search for ways to avoid the collapse of the banking system is complicated by international and unilateral sanctions against Taliban leaders who seized power in Afghanistan.

Afghanistan's banking system was vulnerable even before the Taliban arrived. But after they seized power, aid from other countries stopped, billions of dollars of Afghan assets were frozen abroad, and the country's financial system began to decline. According to UN estimates, the recovery of Afghanistan's financial system could take decades.

The UN proposes to solve the financial problem of Afghanistan using a deposit insurance scheme, measures to ensure sufficient liquidity for short- and medium-term needs, as well as credit guarantees and loan repayment options. But this requires coordination with international financial institutions (World Bank, International Monetary Fund), which have extensive experience working with the country's financial system.

As Afghanistan is on the brink of starvation, financial problems will be extremely difficult for its people.

As it was reported, in August Taliban fighters took control of the entire territory of Afghanistan. President Ashraf Ghani had already relinquished power.

After that, the radical Islamist movement Taliban officially announced the creation of the Islamic Emirate of Afghanistan.

One of the founders of the Taliban said the movement will once again carry out executions and amputations of hands in order to stop crimes, які поширені в Афганістані: пограбування, вбивства і викрадення людей.

In addition, girls will not be able to attend school in Afghanistan. The Taliban has also banned the showing of films and shows with women on television.

The WHO recently stated that over 1 million children may die of hunger in Afghanistan by the end of the year due to drought and economic decline after the Taliban seized power.

Related: First plane with UN humanitarian aid arrives in Afghanistan

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