United States President Joe Biden on Friday signed an order that would split the $7 billion in frozen Afghan funds to be split between humanitarian aid and for victims of the horrific 9/11 terrorist attack.
However, none of the money would be immediately released, but the Democrat's order will require banks to provide a total of $3.5 billion. The fund will be taken from the frozen amount and be placed in a trust fund that will later be distributed through humanitarian groups for Afghan relief and basic needs.
$7 Billion Fund
The other half of the frozen assets will remain in the United States and will be used to pay lawsuits filed by U.S. victims of terrorism that are still working their way through the courts. The money was frozen by the American government after the Taliban insurrection group took control of Afghanistan's government in August after the U.S. withdrew its troops.
The Associated Press reported, in a statement, that the White House said that Biden's order was designed to provide a way for the funds to reach the Afghan people. Officials said the splitting of the frozen funds will prevent the Taliban and malicious actors from getting their hands on the money directly.
Senior Biden administration officials said during a call on Friday that the president's order was only one step in a process that could result in the unlocking of the funds that would benefit the Afghan people. They noted that the U.S. planned to place the money in a separate and distinct trust from the current American humanitarian assistance to the Middle Eastern nation.
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For years, families of victims of the terrifying 9/11 terrorist attack have been pursuing financial compensation from the Taliban and have renewed their efforts after the militant group's takeover of Afghanistan. For months, Biden's administration has been discussing the best way to handle the money from the frozen funds.
Splitting the Money
However, the Taliban has claimed rights to the funds, money that includes assets such as currency and gold. But the U.S. government has refused to give the group access to the money due to the fall of the Afghan government. The American government has not recognized the Taliban as the official government of the Middle Eastern country, as per CNN.
The situation comes as Afghanistan's economy continues to deteriorate since the takeover of the Taliban group. It has led to mass starvation that subsequently results in an enormous and destabilizing new wave of refugees. A number of people is raising the need for extensive spending on humanitarian relief.
Much of the frozen funds came from foreign exchange funds that have accumulated over the last two decades. The time encompasses moments when the United States and other Western nations were donating large sums of money to Afghanistan to help generate activity.
A former top U.S. Treasury Department official in Afghanistan, Alex Zerden, said that the central bank reserves were a kind of rainy day fund for the Afghan people, the New York Times reported.
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