The Norwegian government has decided to suspend aid flows to Afghanistan following the crisis around Kabul Bank, which almost went bankrupt last year as a result of mismanagement and cronyism. The scandal also brought to light that many high-level bank officials, including President Hamid Karzai’s brother, profited from over $900 million in loans that were never repaid.
According to Norwegian Deputy Foreing Minister Espen Barth Eide, a main reason for the decision to freeze aid disbursements was the lack of governance in the Afghan government. The International Monetary Fund (IMF) has similarly announced it will freeze financial aid to Afghanistan until the situation with Kabul Bank is settled.
For the full article on Voice of America, please click here. The picture above is from rawa.org and is credited to European Pressphoto Agency (EPA).