Paralysed banking system pushing Afghanistan towards collapse: Red Cross

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DUBAI: Afghanistan is inching closer towards economic collapse six months after the Taliban seized power, the Red Cross said on Friday (Feb 25), with a paralysed banking system stymieing international efforts to get financial aid into the war-ravaged country. Organisations such as the Red Cross have been f

DUBAI: Afghanistan is inching closer towards economic collapse six months after the Taliban seized power, the Red Cross said on Friday , with a paralysed banking system stymieing international efforts to get financial aid into the war-ravaged country.

"The banking system is totally paralysed. The central bank is not operating," International Committee for the Red Cross Director General Robert Mardini told Reuters, adding that it is paying some 10,000 doctors and nurses using the informal 'hawala' money transfer network. "You cannot just run the country on hawala system. There needs to be a political negotiation for this. But the clock is ticking," Mardini added.

The Afghan economy depended on aid before the western-backed government was overthrown last year by the hardline Islamist Taliban, who are under unilateral sanctions that have made foreign banks reluctant to facilitate aid money transfers.

 

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