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IMF freezes funds for Afghanistan over political uncertainty

by Agencies
08 Nov 2021 at 14:12hrs | Views
The International Monetary Fund (IMF) has put on hold funds to Afghanistan amid the rising uncertainty in the country.

These developments came after IMF recently announced a $650 billion Special Drawing Rights (SDR) allocation for member countries, but Afghanistan at the moment will not be allowed to access these funds, Tolo News reported.

IMF spokesman Gerry Rice said on Thursday at a press conference that Afghanistan will not have access to this grant because of the uncertainty over Afghanistan's government.

"Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government. We're guided by the international community in terms of the recognition of the government in Afghanistan, and we don't have that," he added.

So, the IMF program there has been put on hold. And again, as we said last month, the country cannot access IMF resources, SDRs and so on at this point. But again, I want to say that we stand ready to work with the international community to advocate urgent actions to stall a looming humanitarian crisis, Rice said.

Rice also said that IMF is deeply concerned about the difficult economic and humanitarian situation in Afghanistan.

Soon after the Taliban's takeover of Kabul on August 15, foreign assistance was immediately frozen. Besides this, the US stopped USD 9.4 billion in reserves to the country's central bank, The New York Post reported.

Moreover, the International Monetary Fund and World Bank have also stopped loans, and the Financial Action Task Force warned its 39 member nations to block Taliban assets.

Many Afghans are trying to get money not just for survival but in order to escape the Taliban controlled country. They fear that history may repeat itself.

Source - Agencies