The World Bank has halted funding for projects in Afghanistan after the Taliban seized control of the country.
"We are deeply concerned about the situation in Afghanistan and the impact on the country's development prospects, especially for women," World Bank spokesperson Marcela Sanchez-Bender said in a statement to CNN Business.
According to the World Bank’s website, the Bank has committed more than US$5.3 billion for development projects in Afghanistan. The Afghanistan Reconstruction Trust Fund, administered by the World Bank, has reportedly raised more than US$12.9 billion.
"We have paused disbursements in our operations in Afghanistan and we are closely monitoring and assessing the situation in line with our internal policies and procedures," Sanchez-Bender said.
The World Bank said it will continue to consult with the international community and development partners.
The news deals another blow to an Afghan economy that relies heavily on foreign aid and is facing the specter of rising food prices. The people of Afghanistan face the threat of inflation after the country's currency tumbled to record lows following the fall of the US-backed government in Kabul.
Last week, the International Monetary Fund (IMF) announced that Afghanistan will no longer be able to access the global lender's resources. An IMF spokesperson said it was due to "lack of clarity within the international community" over recognizing a government in Afghanistan.
Also in the days after the Taliban took control of Kabul, the White House said any assets that Afghanistan's central bank has in the US would not be made available to the Taliban.
The BBC says Da Afghanistan Bank has reserves of roughly $9bn, most of which is held in the US.
