World Bank Denies Taliban Claim Over Debt Repayments To Afghan Companies

The World Bank has formally rejected claims made by the Taliban that it has begun repaying outstanding debts owed to Afghan companies.

In an official statement, the international financial institution clarified that the debts in question were incurred under the former Afghan Republic government and are not the responsibility of the World Bank.

On Monday, 20 May, the Taliban’s Ministry of Finance released a statement asserting that the World Bank’s office in Kabul had resumed operations and had begun repaying approximately $50 million to Afghan logistics and construction firms.

The Taliban further claimed that $10.8 million would be paid directly to companies by the World Bank, while the remaining $39.11 million would be disbursed through the ministry in three instalments. The Ministry described this as a “major financial achievement,” suggesting that it would help revive development projects and generate employment opportunities.

However, the World Bank strongly refuted these claims, stating: “These contracts were concluded between the Republic government and the contractors. Hence, the responsibility to make these outstanding payments lay with the Republic government, not the World Bank.”

The Bank clarified that it is not a party to any of the contracts referenced by the Taliban and that it bears no legal obligation to settle them. It further stated that it is only facilitating payments under exceptional circumstances and strictly after a comprehensive verification process conducted by independent third parties.

The World Bank also denied having reached any agreement with the Taliban on the resumption of previous development projects in Afghanistan.

Efforts are currently underway, the Bank said, to finalise a multi-step mechanism that may allow for the resolution of some of the outstanding claims, though any such payments would remain conditional and subject to independent validation.

Since the Taliban’s return to power in August 2021, Afghanistan has been largely cut off from international funding and aid. The World Bank and other international donors have redirected most assistance through humanitarian channels, bypassing the Taliban administration.