Norway contributes to debt relief for Afghanistan via World Bank
News story | Date: 21/12/2022 | Ministry of Foreign Affairs
Norway has provided approximately NOK 50 million to help clear Afghanistan’s debt arrears to the World Bank’s International Development Association (IDA). This will make it possible to deliver more international aid to the Afghan people. No funds will go to, or via, the Taliban.
Developments in Afghanistan are deeply worrying. In addition to the grave humanitarian situation, the human rights situation is steadily deteriorating. Norway is very concerned by reports of the Taliban’s plans to bar women from universities. This is the latest in a series of steps that place unacceptable restrictions on women's and girls' rights. Nonetheless, Norway has emphasised that while we remain disappointed bythe Taliban’s actions we will not introduce measures that would worsen the situation for the Afghan population.
Payment of debt arrears is required before the IDA can release up to NOK 8.1 billion in new aid funds for to the people of Afghanistan over the next two years. These funds were previously set aside for Afghanistan but have been frozen since the Taliban’s return to power. IDA is the largest single channel for multilateral aid and provides subsidised loans and grants to the world’s poorest countries.
Once the funds are released, these resources will be used to provide support for the Afghan people, who are contending with a protracted humanitarian crisis. Norway’s contribution to debt relief for Afghanistan has been granted on an exceptional basis, in consultation with the World Bank. Norway is seeking to promote sustainable aid mechanisms in the wake of the Taliban’s takeover of power.
The scale of humanitarian need in Afghanistan remains enormous. At the same time, there has been a drastic decrease in available funding. IDA could be a key source of funding for basic services and measures to enhance food security for the Afghan population. This type of support will help to reduce the need for humanitarian aid. Like other international aid, funding from IDA will be channelled through the UN and various international organisations.
Norway’s contribution is a stopgap solution. More long-term solutions for payment of debt arrears are expected to be established in 2023.
See also: Norway increases support for civilians in Afghanistan.