UN sets up special trust fund for 'people's economy' in Afghanistan

The United Nations said on Thursday it had set up a special trust fund to provide urgently-needed cash directly to Afghans through a system that would tap into donor funds frozen since the Taliban takeover last August.

Achim Steiner, the U.N. Development Programme's (UNDP) administrator, said that Germany, a first contributor, had pledged 50 million euros ($58 million) to the fund, and that it was in touch with other donors.

"Discussions over the last few weeks have focused on how we do find a way to be able to mobilise these resources in view of the economic implosion that is now unfolding and the international community's repeated commitment not to abandon the people of Afghanistan," he told a news briefing.