Bank Guarantees from Previous Afghan Republic Face Restrictions Under Taliban Rule

The Central Bank of Afghanistan has announced that bank guarantees related to projects and contracts deposited during the former republic period are now facing restrictions following the Taliban’s return to power.

Haseebullah Noori, spokesperson for the Central Bank, stated that these guarantees, which were placed in banks to ensure the execution of projects and contracts, have become subject to new constraints imposed by the Central Bank after the political change and the Taliban’s regained control.

Bank guarantees are typically used to secure the fulfillment of contractual obligations between companies and governmental or private entities, and any restrictions on them could affect the implementation of projects and payments.

However, no further details have been provided regarding the nature of these restrictions, their scope, or their direct impact on companies and investors. Economic experts have previously emphasized that transparency in banking and financial decisions is crucial to gaining the trust of economic actors and preventing further market stagnation.