Latest News
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.
The ministry of commerce and industry said on Wednesday a meeting was held with Chinese and American investors, where the process of investing in Afghanistan was explained to them.
“General security is provided in Afghanistan and investors can invest in this country with ease,” said Sibghatullah Akhundzada, head of investment at the ministry.
The ministry said a presentation was delivered by the ministry’s department of investment on investing in the country, which detailed opportunities available.
The ministry said questions were asked by the Chinese and American investors, who showed an interest in investing in the energy, mining and construction sectors.
A family in Kabul claims that a relative of theirs has been held prisoner in Guantanamo Bay for 17 years.
Members of the family say his name is Mohammad Rahim.
They have called on the Islamic Emirate to enter into negotiations with America for the release of Rahim.
Safura Bibi, the mother of Rahim, claims her son was arrested seventeen years ago in the city of Lahore in Pakistan and transferred to Guantanamo.
According to Rahim’s mother he was selling honey at the time and was taking religious classes when arrested.
This mother blames Pakistan for her son’s arrest.
She says she is in contact with her son through the Red Cross and sometimes gets letters from him.
Other members of the family claim Rahim worked in the anti-narcotics department during the first round of the Islamic Emirate government and is currently the last Afghan prisoner in Guantanamo Bay.
The family want the US to release him.
The family also ask the Islamic Emirate to work to secure his release.
The Islamic Emirate says it is following up on the issue and has raised this in meetings they have had with the Americans.
Mohammad Dawood; the younger son of Mohammad Rahim, who was two years old at the time of his father’s arrest says he hopes to see his father again.
Kyrgyzstan’s Foreign Minister Jeenbek Kulubaev on Tuesday called on Central Asian nations to strengthen cooperation and coordination with regards to Afghanistan.
Speaking at the 13th Annual Meeting of Deputy Ministers of Foreign Affairs of Central Asian states, Kulubaev said that the establishment of peace and stability in Afghanistan plays an important role in ensuring regional security and prosperity.
He expressed support for the activities of the UN Assistance Mission in Afghanistan and thanked the Special Representative of the UN Secretary-General for Afghanistan Roza Otunbayeva for her work within the framework of the UNAMA mandate, Kyrgyzstan’s Foreign Ministry said in a statement.
Roza Otunbayeva also attended the two-day meeting in Bishkek which ended on Tuesday.
Tahawol: Karzai’s criticism of world politics discussed
Saar: foreign ministry stance toward political oppositions discussed
Ministry of commerce meets with Chinese and American investors
Iranian trade delegation visits Balkh for talks with Afghan businessmen
Afghan family claim son held in Guantanamo Bay for past 17 years
Afghanistan’s Bayat Power the Proud Winner of Asian Power Award 2023
Afghan athlete wins gold at World Bodybuilding Championships
Messi wins record eighth Ballon d’Or for best player in the world
Militants attack air force base in central Pakistan, says military
Afghanistan, Uzbekistan and Pakistan railway officials held tripartite meeting
Tahawol: Karzai’s criticism of world politics discussed
Saar: foreign ministry stance toward political oppositions discussed
Tahawol: Iran’s call for security & stability in Afghanistan discussed
Saar: Importance of environmental & air protection discussed
Tahawol: Formation of regional contact group on Afghanistan discussed
-
Latest News3 days agoIranian and Indian officials discuss formation of regional contact group on Afghanistan
-
World5 days agoIsrael reviews list of hostages set to be freed by Hamas on Saturday
-
World4 days agoHamas frees more Israelis and Thais in temporary truce
-
Latest News5 days agoUS launches hotline for Afghans facing deportation from Pakistan
-
Climate Change5 days agoIEA should be included in climate talks: International Crisis Group
-
Latest News4 days agoAny type of violence against women is prohibited: Mujahid
-
Science & Technology5 days agoWorld’s largest iceberg breaks free, heads toward Southern Ocean
-
World2 days agoMore Israeli hostages expected to be freed after Gaza truce extended