World Bank suspends aid to Afghanistan

Washington-based institution freezes funding for projects in war-torn country following Taliban takeover.

World Bank suspends aid to Afghanistan

The World Bank said Tuesday that it has halted disbursements of aid money to Afghanistan after the Taliban took control of the war-torn country. 

The bank is "closely monitoring" the situation in Afghanistan, said a spokesperson.

“We are deeply concerned about the situation in Afghanistan and the impact on the country’s development prospects, especially for women,” the spokesperson said.

The Washington-based institution will continue to consult closely with the international community and development partners on the situation and is exploring ways to remain engaged to preserve “hard-won development gains.”

Since 2002, the World Bank, through the International Development Association, has committed around $5.3 billion for reconstruction and development projects in Afghanistan.

Earlier this year, the bank committed around $800 million to the country.

The move follows a decision by the International Monetary Fund (IMF) last week to suspend Afghanistan's access to the Fund's resources, including nearly $440 million in new monetary reserves.

"There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access SDRs or other IMF resources," an IMF spokesperson said in a statement, referring to special drawing rights, or supplementary foreign exchange reserve assets defined and maintained by the IMF.