WASHINGTON: United States (US) announced that it would transfer $ 3.5 billion in Afghan central bank assets into a new Swiss-based trust fund that will be shielded from Taliban and used to help stabilise Afghanistan’s collapsed economy.

Afghan Fund, managed by a board of trustees, could pay for critical imports like electricity, cover debt payments to international financial institutions, protect Afghanistan’s eligibility for development aid, and fund printing of new currency. “Afghan Fund will protect, preserve and make targeted disbursements of that $ 3.5 billion to help provide greater stability to Afghan economy,” US Treasury said in a statement.

“Until conditions are met, sending assets to DAB would place them at unacceptable risk and jeopardise them as a source of support for Afghan people,” US Deputy Treasury Secretary Wally Ademeyo said in a letter to central bank’s Supreme Council seen by Reuters. “Economy of Afghanistan faces serious structural issues, exacerbated by Taliban takeover,” a senior US official, speaking on condition of anonymity told reporters in a briefing about new fund. Other $ 3.5 billion is being contested in lawsuits against Taliban stemming from September 11, 2001 attacks on United States. Courts could decide to release that money, which could be deposited in new trust fund.

Another approximately $ 2 billion in Afghan central bank assets held in European and Emirati banks also could end up in fund. Fund will be overseen by a board comprising a US government representative, a Swiss government representative, Anwar Ahady a former Afghan central bank chief and former finance minister and Shah Mehrabi a US academic who remains on DAB Supreme Council.

Published in The Daily National Courier, September, 15 2022

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