Washington DC, 23 August 2022 (TDI): The administration of US President, Joe Biden shall proceed with negotiations to release Afghan foreign assets.
This has been reported amidst the tensions between the US and the Taliban over the assassination of Al-Qaeda leader Ayman al-Zawahiri in Kabul.
According to Executive Director of Human Rights Watch, Kenneth Roth, Biden will reportedly transfer billions in Afghan Central Bank assets to a proposed Swiss-based trust fund.
Moreover, Kenneth Roth added that “disbursements would be made with the help of an international board” to avoid the Taliban.
To address Afghanistan’s liquidity/humanitarian crisis, Biden reportedly will transfer billions in Afghan central bank assets to a proposed Swiss-based trust fund. To bypass the Taliban, “disbursements would be made w/ the help of an international board.” https://t.co/gUvZxl7ZKr
— Kenneth Roth (@KenRoth) August 22, 2022
The United Nations (UN) warns that almost half of Afghanistan’s 40 million people face “acute hunger” as winter approaches.
Consequently, the decision to move forward with the plan to assist in stabilizing the country’s crumbling economy highlights raises concerns in Washington.
As per the information that has been made publicly available, the liberated foreign funds are expected to be transferred to a Swiss account as a trust fund, where an international board will monitor its administration.
Given that they are subject to US and UN sanctions, Taliban officials are excluded from the disbursement process.
US State Department and Treasury officials told independent analysts at an Aug 11 briefing, 12 days after a CIA drone strike, that despite frustration with the pace, they would continue the negotiations.
According to a US source, the strike did not change the US government’s commitment to setting up the international trust fund. Also, it continued “it is working with the same speed and alacrity as before the strike.”
Also read: Russia emphasizes need to release Afghanistan’s frozen assets
Proceedings for releasing assets
After the Taliban took control of Kabul on August 15, 2021, the economic and humanitarian crises in Afghanistan worsened. As Washington and other donors halted providing aid that funded 70% of the government budget.
The US has also ceased transporting hard currency effectively shutting down Afghanistan’s banking sector. Furthermore, it has frozen $7 billion in Afghan assets in the US Federal Reserve Bank of New York.
Initially, the $3.5 billion that the Biden administration withheld would go into the planned trust fund. That would be potentially used to pay Afghanistan’s World Bank arrears and for printing Afghanis, the national currency, and passports, both in short supply.
The remaining $3.5 billion is being contested in lawsuits brought against the Taliban in response to the attacks on the United States on September 11, 2001. However, courts may decide to release those assets as well.
In the future, the assets might also be used to recapitalize DAB (Da Afghanistan Bank). It will bolster the capacity to regulate the value of the Afghani, fight inflation, and provide hard money for imports.
