KABUL (Pajhwok): In an expected development, the US and Swiss governments say $3.5 billion of frozen Afghan central bank’s assets will be used for the benefit of poverty-stricken Afghan people.
The current Afghan administration would have no access to the newly-established Afghan Fund, the Associated Press reported on Wednesday.
In a joint statement, the US Treasury and State Departments said Da Afghanistan Bank (DAB) must demonstrate its capacity and independence to responsibly perform the duties of a central bank.
"Robust safeguards have been put in place to prevent the funds from being used for illicit activity," the statement added.
Deputy Secretary of State Wendy Sherman was quoted as saying: "Today, the US 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 …”
“The United States remains committed to supporting the people of Afghanistan amidst ongoing economic and humanitarian crises,” said the State Department.
The Afghan Fund will maintain its account with the Bank for International Settlements (BIS) based in Switzerland. An external auditor will monitor and audit the Afghan Fund under Swiss law.
The Biden administration blocked in February the Afghan central bank’s reserves worth $7 billion in the US --almost six months after the Taliban came to power in mid-August 2021.
The foundation's board of trustees is composed of two Afghan economic experts, as well as representatives from the US government and a Swiss federal administration.
PAN Monitor/mud
