The initiative seeks to inject liquidity into Afghanistan in order to avoid the collapse of its economy.
The UN on Wednesday launched a financing program aimed at injecting liquidity into Afghanistan in order to prevent its economy from collapsing, especially by supporting micro-enterprises.
The United Nations Development Program (UNDP) has created this fund, thanks to which governments can now channel funds to Afghanistan through specific programs to support the Afghan economy established by the United Nations.
At a press conference in Geneva, the head of UNDP, Achim Steiner, stressed that the country is not only facing political upheaval, but is also witnessing “an economic implosion.”
The Taliban overthrew the US-backed Afghan government in mid-August, after twenty years of conflict, and established an Islamic emirate.
Since then, the country has faced a cash shortage. The Taliban, subject to international sanctions, do not have the funds to run the banks and pay the salaries. Washington notably froze the reserves of the Afghan central bank.
The Afghan economy continues in a precarious situation, food prices are rising and unemployment is skyrocketing.
According to a rapid assessment published in early September by UNDP, around 97% of the country’s population is at risk of extreme poverty if an urgent solution is not provided to the country’s political and economic crises.
During the first year, the mechanism launched by UNDP should raise some 667 million dollars (more than 573 million euros) to help 4.5 million people. (I)
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