Paralysed banking system pushing Afghanistan in the direction of collapse -Pink Cross

DUBAI, Feb 25 (Reuters) – Afghanistan is inching nearer in the direction of financial collapse six months after the Taliban seized energy, the Pink Cross mentioned on Friday, with a paralysed banking system stymieing worldwide efforts to get monetary help into the war-ravaged nation.

Organisations such because the Pink Cross have been pressured to depend on casual cash exchanges to maneuver money in to pay the salaries of some employees, though most of Afghanistan’s estimated 500,000 state workers have now labored with out pay for months.

“The banking system is completely paralysed. The central financial institution shouldn’t be working,” Worldwide Committee for the Pink Cross Director Normal Robert Mardini advised Reuters, including that it’s paying some 10,000 medical doctors and nurses utilizing the casual ‘hawala’ cash switch community.

Mardini mentioned on a name from the capital Kabul that the worldwide group and the Taliban wanted to discover a pragmatic answer to get the banking system up and operating as Afghanistan was hanging by a thread.

“You can’t simply run the nation on hawala system. There must be a political negotiation for this. However the clock is ticking,” Mardini added.

Afghanistan’s new rulers have appealed to the worldwide group to assist the nation and have pressed for billions of {dollars} of frozen property abroad to be launched.

The Afghan financial system trusted help earlier than the western-backed authorities was overthrown final 12 months by the hardline Islamist Taliban, who’re below unilateral sanctions which have made overseas banks reluctant to facilitate help cash transfers.

America has sought to allay fears of these offering humanitarian help to Afghanistan of falling foul of sanctions and mentioned it might release $3.5 billion in frozen Afghan central financial institution property on U.S. soil to assist Afghans.

Mardini mentioned the Pink Cross would quickly request an extra $50 million from donors for help to Afghanistan this 12 months, on prime of an already budgeted 150 million Swiss francs ($161 million).

“Humanitarian help is required greater than ever,” he mentioned.

($1 = 0.9275 Swiss francs)

Reporting by Alexander Cornwell; Enhancing by Alexander Smith

Our Requirements: The Thomson Reuters Belief Ideas.