World Bank halts aid to Afghanistan after Taliban takeover
The World Bank halted funding for ongoing projects in Afghanistan after the Taliban took control of the country.
This step comes just after the International Monetary Fund (IMF) suspended payments to Afghanistan, reports the BBC.
He expressed concern over the impact of the Taliban takeover on “the country’s development prospects, especially for women.”
The Biden administration also froze Afghan central bank assets held in the United States.
“We have suspended disbursements in our operations in Afghanistan and we are closely monitoring and evaluating the situation in accordance with our internal policies and procedures,” a World Bank spokesperson told the BBC.
“We will continue to consult closely with the international community and development partners. Together with our partners, we are exploring ways to stay engaged to preserve hard-won development gains and continue to support the Afghan people.
Since 2002, the Washington-based financial institution has committed more than $ 5.3 billion (£ 3.9 billion) to reconstruction and development projects in Afghanistan.
The World Bank told staff on Friday that its Kabul-based team and their immediate families had been safely evacuated from Afghanistan to Pakistan.
The World Bank’s decision to suspend payments to Afghanistan is the latest financial blow to the country’s new government.
Last week, the IMF announced that Afghanistan will no longer be able to access the resources of the global lender.
An IMF spokesperson said this was due to “lack of clarity within the international community” on the recognition of a government in Afghanistan.
About $ 440 million in new currency reserves were to be made available to the country from August 23.
Also in the days following the Taliban takeover of Kabul, the White House said not all Afghan central bank assets in the United States would be made available to the Taliban.
Da Afghanistan Bank has reserves of around $ 9 billion, most of which is held in the United States.