WASHINGTON (Reuters) – The U.S. authorities will take steps on Friday to free half of the $7 billion in frozen Afghan reserves held in the United States to aid the Afghan individuals with out offering the Taliban entry to the funds, sources acquainted with the plan mentioned.
A multi-step plan requires the opposite half of the funds to stay in the United States, topic to ongoing litigation by U.S. victims of terrorism, together with kin of those that died in the Sept. 11, 2001, hijacking assaults, the sources mentioned.
The moves come amid mounting strain in Congress for the Biden administration to use the frozen Afghan reserves to handle the dire financial disaster dealing with Afghanistan, the place thwhich struggling extreme recession and liquidity disaster.
To transfer ahead, President Joe Biden will signal an government order on Friday that may block property of the Afghan central financial institution held in the United States by U.S. monetary establishments, requiring the switch of the funds right into a consolidated account held on the Federal Reserve Bank of New York, the sources mentioned.
The U.S. authorities will work to guarantee entry to $3.5 billion of these assets for “the good thing about the Afghan individuals and for Afghanistan’s future,” mentioned one of many sources, with out offering particulars.
Decisions in regards to the remaining funds want to be made by federal courts since a few of the 9/11 households have writs of execution in opposition to the frozen assets, the sources mentioned, including that the plaintiffs would have a full alternative to have their claims heard in courtroom.
(Reporting by Andrea Shalal; Editing by Doina Chiacu and Raissa Kasolowsky)
