The United States on Wednesday announced to release USD 3.5 billion of the total USD 7 billion frozen money of Afghanistan to the new “Afghan Fund” for humanitarian aid.
The Treasury Department of the US said that it would transfer USD 3.5 billion in Afghan central bank assets into a new Swiss-based trust fund that will be shielded from the Islamic Emirate and used to help stabilise Afghanistan’s collapsed economy. According to CNN, two senior US officials say, “The US is moving USD 3.5 billion to the new “Afghan Fund,” but will not release the money imminently to an institution in Afghanistan because there is no trusted institution to guarantee the funds will benefit the Afghan people.”
“Instead, it will be administered by an outside body, independent of the Taliban and the country’s central bank,” the official said.
“The Fund may use assets to provide Afghan banking sector liquidity, keep Afghanistan current on its debt service obligations, support exchange rate stability, transfer funds, as appropriate, to public Afghan financial institutions, or any other use for the benefit of the Afghan people that is approved by the Fund’s Board of Trustees,” said a US State Department official.
The officials said that the transfer of the funds will depend upon two key factors: the responsible management of the bank and assurances that the funds will not be diverted to terrorists or criminals, CNN reported.