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UN warns of ‘colossal’ collapse of Afghan banking system
The United Nations on Monday pushed for urgent action to prop up Afghanistan’s banks, warning that a spike in people unable to repay loans, lower deposits and a cash liquidity crunch could cause the financial system to collapse within months.
In a three-page report on Afghanistan’s banking and financial system seen by Reuters, the U.N. Development Programme (UNDP) said the economic cost of a banking system collapse – and consequent negative social impact – “would be colossal.”
An abrupt withdrawal of most foreign development support after the Islamic Emirate of Afghanistan (IEA) seized power on August 15 from Afghanistan’s Western-backed government has sent the economy into freefall, putting a severe strain on the banking system which set weekly withdrawal limits to stop a run on deposits.
“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 UNDP report said.
Finding a way to avert a collapse is complicated by international and unilateral sanctions on IEA leaders, Reuters reported.
“We need to find a way to make sure that if we support the banking sector, we are not supporting Taliban (IEA),” Abdallah al Dardari, head of UNDP in Afghanistan, told Reuters.
“We are in such a dire situation that we need to think of all possible options and we have to think outside the box,” he said. “What used to be three months ago unthinkable has to become thinkable now.”
Afghanistan’s banking system was already vulnerable before the IEA came to power. But since then development aid has dried up, billions of dollars in Afghan assets have been frozen abroad, and the United Nations and aid groups are now struggling to get enough cash into the country.
The UNDP’s proposals to save the banking system include a deposit insurance scheme, measures to ensure adequate liquidity for short- and medium-term needs, as well as credit guarantees and loan repayment delay options.
“Coordination with the International Financial Institutions, with their extensive experience of the Afghan financial system, would be critical to this process,” UNDP said in its report, referring to the World Bank and International Monetary Fund.
The United Nations has repeatedly warned since the IEA took over that Afghanistan’s economy is on the brink of a collapse that would likely further fuel a refugee crisis. UNDP said that if the banking system fails, it could take decades to rebuild.
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Latvia launches human trafficking investigation after Epstein file release
Latvia has launched a criminal investigation into potential human trafficking after the release of documents related to late U.S. sex offender Jeffrey Epstein that included references to Latvian model agencies and models, police in the Baltic nation said on Thursday.
The investigation, which also involves Latvia’s prosecutors and its Organised Crime Bureau, will centre on “the possible recruitment of Latvian nationals for sexual exploitation in the United States”, police said in a statement, Reuters reported.
It has asked potential victims to come forward.
Latvian President Edgars Rinkevics called for the investigation after the public broadcaster reported the Epstein documents included passport data and travel details for several Latvian women.
Eriks Neisans, head of the Natalie modelling agency mentioned in the documents, denied any knowledge of wrongdoing to the public broadcaster.
The U.S. Justice Department’s recent release of millions of internal documents related to Epstein has revealed the late financier and sex offender’s ties to many prominent people in politics, finance, academia and business – both before and after he pleaded guilty in 2008 to prostitution charges.
Latvia’s neighbour Lithuania has launched its own investigation into human trafficking earlier this week.
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Afghans among top asylum seekers in Russia in 2025, report shows
Afghan citizens were among the top three nationalities applying for asylum in Russia in 2025, according to new statistics reviewed by TASS. The figures show that 281 Afghan nationals submitted asylum requests during the year, placing Afghanistan in the third-highest position.
The data shows that Syrians ranked second with 3,196 applications. The highest number of requests came from Ukrainian citizens, who filed 3,332 applications in 2025—slightly lower than in previous years but still the largest group overall.
Uzbekistan (176 applicants) and Germany (129) also appeared among the top five nationalities seeking asylum in Russia last year. Overall, 8,220 foreigners applied for temporary asylum in 2025, an increase of 1,341 compared to 2024.
Temporary asylum in Russia grants legal residence, permission to work without a permit, access to medical care under compulsory insurance, travel documents, education opportunities, and financial assistance. It is also considered the first step toward securing a temporary residence permit and eventually Russian citizenship.
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IEA ambassador meets top Chinese diplomat for Asia
Bilal Karimi, the Ambassador of the Islamic Emirate in Beijing, met on Thursday with Liu Jinsong, head of the Asian Department of China’s Ministry of Foreign Affairs, and Yue Xiaoyong, China’s Special Representative for Afghanistan. The officials discussed political, economic, and commercial relations between the two countries, the activation of the Wakhan corridor, consular affairs, and other related issues.
According to a statement from the Embassy of Afghanistan in China, Karimi praised China’s positive stance toward Afghanistan and considered cooperation between the two countries necessary.
The statement added that Liu and Yue, while respecting Afghanistan’s independence, territorial integrity, and sovereignty, also emphasized the continuation of cooperation.
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