This Wednesday, the United Nations (UN) announced a program aimed at Financing the Afghan economy to prevent its collapse, and provide liquidity to small enterprises in particular.
The fund was created through the United Nations Development Program (UNDP), and through it, governments will be able to channel money into Afghanistan through specific programs to support the economy.
The head of the United Nations Development Program, Achim Steiner, stressed at a press conference in Geneva that the country is not only facing political turmoil, but “we are also witnessing an economic collapse.”
Since last August, when the Taliban overthrew the US-backed Afghan government, the country has been in a deep political and economic crisis.
Afghanistan faces a cash shortage. The Taliban are under international sanctions, so they do not have the resources to run banks or pay salaries. From Washington, a large part of the reserves of the Central Bank of Afghanistan were frozen.
Meanwhile, food prices continue to rise, along with unemployment. According to a rapid assessment published in early September by the United Nations Development Program, about 97% of the country’s population is at risk of extreme poverty if an urgent solution to the country’s political and economic crises is not provided.
During the first year, the mechanism set up by the United Nations Development Program will raise about $667 million to assist 4.5 million people.
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