UN sets up fund for Afghanistan amid cash shortage

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22 October 2021

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Kabul, Oct 22 (Prensa Latina) The United Nations has set up a special trust fund to provide urgently-needed cash directly to Afghans through a system that taps into donor funds frozen after the Taliban takeover of Kabul.

The aim is to inject liquidity into the Afghan households so they can survive this winter, Pajhwok news agency reported.

UN Development Program (UNDP) administrator Achim Steiner said that Germany has pledged 50 million euros (58 million dollars) to the fund, and it is in touch with other donors to mobilize resources.

The UNDP had costed activities to be covered over the first 12 months at approximately 667 million dollars, Steiner said.

The International Monetary Fund stated on Tuesday that the Afghan economy is set to contract up to 30 percent this year, which is likely to further fuel a refugee crisis that will affect neighboring countries, Turkey and Europe.

Following the Taliban takeover, billions in Afghanistan's central bank assets abroad were frozen and international financial institutions suspended access to funds, although humanitarian aid has continued.