The UN on Monday pushed for urgent action to prop up Afghanistan’s banks, warning that a spike in people unable to repay loans, lower deposits and a cash liquidity crunch could cause the financial system to collapse within months.

In a three-page report on Afghanistan’s banking and financial system seen by Reuters, the UN Development Programme (UNDP) said the economic cost of a banking system collapse — and consequent negative social impact -“would be colossal”.

An abrupt withdrawal of most foreign development support after the Taliban seized power on August 15 from Afghanistan’s western-backed government has sent the economy into freefall, putting a strain on the banking system which set weekly withdrawal limits.