The US and Swiss governments have announced that they will release $3.5 billion of Kabul’s frozen funds to give to the Taliban government and enable it to deal with the famine crisis in Afghanistan.
The US Treasury and State Departments said in a joint statement that the Central Bank of Afghanistan, which had $7 billion frozen in February, “must demonstrate that it has the experience, ability and independence to carry out the duties of a central bank responsibly.” Robust measures have been taken to prevent funds from being used in illegal activities.
Afghanistan’s international funding was suspended and the country’s billions of dollars of overseas assets, mostly in the US, were frozen after the Taliban took control of the country in August 2021 following the withdrawal of US troops.
In February, US President Joe Biden issued an executive order calling on banks to provide $3.5 billion in frozen funds to a trust fund to be distributed through humanitarian aid groups and to meet Afghanistan’s basic needs.
The Taliban government will not be part of the new Afghan fund, which will have an account with the Bank for International Settlements in Switzerland.
Another $3.5 billion will remain in the United States to fund lawsuits by American victims of terrorism that are still pending in courts in lawsuits filed by family members of the people killed on September 11, 2001.
Source: AP