WASHINGTON : President Joe Biden is expected to issue an executive order on Friday to move $7 billion of the Afghan central bank’s assets frozen in the U.S. banking system to fund humanitarian relief in Afghanistan and compensate victims of the Sept. 11, 2001, attacks, according to a U.S. official familiar with the decision.
The order will require U.S. financial institutions to facilitate access to $3.5 billion of assets for Afghan relief and basic needs. The other $3.5 billion would remain in the United States and be used to fund ongoing litigation by U.S. victims of terrorism, the official said. The official spoke on the condition of anonymity because the decision had not been formally announced.
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.
Afghanistan’s long-troubled economy has been in a tailspin since the Taliban takeover that came as the U.S. military withdrew from the country in August. Nearly 80% of Afghanistan’s previous government’s budget came from the international community. That money, now cut off, financed hospitals, schools, factories and government ministries. Desperation for such basic necessities has been further exacerbated by the COVID-19 pandemic as well as health care shortages, drought and malnutrition.
