US President Joe Biden ordered the frozen billions of the Afghan government on Friday released† However, half of the amount, 3.5 billion dollars, will not go to Afghanistan, but has been reserved by Biden for relatives of the ‘September 11’ attacks. The Taliban, back in power since August, call the highly unusual move “theft.”
Funds in US banks had been built up by the democratically elected government of the Republic of Afghanistan and were frozen when the Taliban took power. Sanctions against members of the interim government prevented the release of the money, much to aid organizations’ concern. They lack the financial means to help the Afghan population through the winter.
For years, almost 80 percent of the Afghan economy was externally financed. The frozen assets therefore largely come from international donors. As many aid programs have now dried up and many Afghans have become unemployed, calls for the release of the money have been growing. One million Afghan children are estimated to be at risk of starvation and cold this winter.
Financial isolation
Although the US had warned the Taliban that they would face financial isolation if they conquered the country militarily, the new rulers are demanding the money. However, as long as they are not recognized as an official government, a regular flow of funds is out of the question. Western governments only want to recognize the Taliban if they respect human rights, which is still happening badly. For example, on Friday it was announced that they had arrested two foreign journalists and some Afghan employees. The Taliban say they know nothing.
Western governments and international organizations are meanwhile looking for ways to help the Afghan population without having to channel money through the Taliban. Biden’s decision has yet to be finalized and is subject to a court ruling. Relatives of the attacks on September 11, 2001 had already seized the billions. They hope to be able to hold the Taliban legally liable, because at the time they provided shelter for the attackers of the terrorist network Al-Qaida.
Fund
The president wants to set up a fund that will deposit 3.5 billion dollars for compensation to victims and next of kin. The $3.5 billion that Biden wants to go to Afghanistan also depends on this court decision. In addition to the seven billion dollars in the US, two billion dollars in Afghan government money is placed in the United Arab Emirates, Germany and Switzerland, among others. Those amounts are also frozen.
Also read: Many billions of dollars have eroded Afghanistan