IMF CALLS FOR ACTION TO PREVENT HUMANITARIAN CRISIS IN AFGHANISTAN

Fri 17 September 2021:

The International Monetary Fund’s engagement with Afghanistan remains suspended due to the lack of clarity on international recognition of the government, but the organization stands ready to work to resolve the matter to stave off a looming humanitarian crisis, IMF spokesperson Gerry Rice said on Thursday.

“We stand ready to work with the international community to advocate for urgent actions to stall a looming humanitarian crisis,” Rice said.

Rice signaled the IMF favors “allowing the flow of remittances and small scale transfers” to Afghanistan.

“Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government,” Rice said in a press briefing. “The IMF program (on Afghanistan) there has been put on hold. The country cannot access the IMF resources.”

The IMF, however, is deeply concerned over a looming economic and humanitarian crisis in Afghanistan, and the fund calls upon the international community to immediately focus on the matter, he added.

After the civilian government in Kabul fell swiftly to the Taliban, the IMF and World Bank suspended activities in the country, which meant withholding aid as well as $340 million in new reserves issued by the IMF last month.

And with Washington blocking access to much of the $9 billion in Afghan reserves held overseas, the country is facing a cash crunch.

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