World News | US Sets Up Afghan Relief Fund with Frozen Central Bank Money

Washington, Sep 14 (AP) The US and Swiss governments and Afghan economics experts said on Wednesday they will transfer USD 3.5 billion in frozen funds from Afghanistan's central bank to use for the country's people as hunger grips every province there.

Notably, the Taliban government will not be a part of the new Afghan Fund, which will maintain its account with the Bank for International Settlements in Switzerland.

Also Read | Narendra Modi, Xi Jinping, Vladimir Putin Among Top Leaders To Attend First In-Person SCO Summit After COVID-19.

In the interim, Afghanistan's central bank, which in February had USD 7 billion in frozen funds, “must demonstrate that it has the expertise, capacity, and independence to responsibly perform the duties of a central bank,” the US Treasury and State departments said on Wednesday in a joint statement.

“Robust safeguards have been put in place to prevent the funds from being used for illicit activity."

Also Read | Ukraine President Volodymyr Zelenskyy Visits Recently Retaken, Devastated City of Izium (See Pics).

International funding to Afghanistan was suspended and billions of dollars of the country's assets abroad, mostly in the United States, were frozen after the Taliban took control of the country in August 2021 following the US military's withdrawal.

In February, President Joe Biden issued an executive order that called for banks to provide USD 3.5 billion of the frozen money to a trust fund for distribution through humanitarian groups for Afghan relief and basic needs.

The other USD 3.5 billion will stay in the US to finance payments from lawsuits by US victims of terrorism that are still working their way through the courts, prompted by claims brought by family members of people killed on September 11, 2001.

“The Afghan Fund will help mitigate the economic challenges facing Afghanistan while protecting and preserving USD 3.5 billion in reserves from Da Afghanistan Bank (DAB), Afghanistan's central bank, for the benefit of the people of Afghanistan,” Treasury Deputy Secretary Wally Adeyemo said.

He said the Taliban's “repression and economic mismanagement” had exacerbated longstanding economic challenges for Afghanistan that had made the return of the funds untenable.

Human Rights Watch said in August that Afghanistan's humanitarian crisis cannot be effectively addressed unless the US and other governments ease restrictions on the country's banking sector to allow economic activity and humanitarian aid.

Nearly half the Afghan population — 18.9 million people — is estimated to be acutely food insecure between June and November 2022, the World Food Programme said.

All 34 provinces in the country are facing some level of crisis or emergency levels of acute food insecurity.

Deputy Secretary of State Wendy Sherman said the people of Afghanistan are facing humanitarian and economic crises born of “decades of conflict, severe drought, COVID-19, and endemic corruption.”

“Today, the United States and its partners take an important, concrete step forward in ensuring that additional resources can be brought to bear to reduce suffering and improve economic stability for the people of Afghanistan while continuing to hold the Taliban accountable,” Sherman said. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)