Fitch: Afghanistan’s economy could lose between 10% and 20% after the takeover of the Taliban

The research and risk analysis arm of credit rating agency Fitch said that a loss of 10% to 20% of Afghanistan’s gross domestic product following the Taliban takeover of the country cannot be ruled out.

“It is difficult for the country to achieve positive growth quest’year, “Anoeta Basu, Asia risk manager at Fitch Solutions, told Reuters on Friday.

The International Monetary Fund suspended aid allocated to Afghanistan due to uncertainty over the state of the government in Kabul after the Taliban movement took control of the country, according to the Fund’s announcement.

The Fund added that the international community’s lack of clarity of vision regarding the recognition of a government in Afghanistan makes it necessary to stop Special Drawing Rights or other resources of the International Monetary Fund.

The IMF was supposed to release a final batch of aid to Afghanistan as part of a program approved in November last year, totaling $ 370 million.

The European Union also suspended development funding for Afghanistan after the Taliban took control of the war-torn country.

Germany and Finland announced in earlier Tuesday that they would suspend development aid for the time being, as EU foreign affairs chief Josep Borrell stressed a broader move to stop funding.

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