The government of Afghanistan could be bankrupt in the next 30 days, according to the IMF (via The Guardian).
Bailout talks for an $820 million deal to save the country’s biggest bank have made little progress. And, without the IMF saying yes to giving the country cash, other foreign donors may not be able to give cash either.
From The Guardian:
As long as the IMF declares the plans to be inadequate, many countries, including Britain, are legally barred from pumping money into a government that is almost completely reliant on foreign cash to pay civil servants’ salaries.
It was reported by Reuters that the IMF has now formally rejected the Afghan government’s proposals, meaning aid disbursements will remain on hold. The failure to reach a deal by a deadline of last Saturday also meant a $70m payment from the World Bank’s Afghan reconstruction trust fund was automatically withheld.
Without cash from the IMF, Afghanistan will have to rely on the donations of foreign states. Propping up the country may be about to become more expensive for countries like the United States.
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