$7B in Frozen Afghan Funds Being Split Between 9/11 Victims, Relief

President Joe Biden on Friday signed an executive order aimed at freeing up $7 billion in Afghan central bank assets for humanitarian aid to the Afghan people and for ongoing litigation brought by American victims of terrorism including the Sept. 11, 2001, hijacked plane attacks.

The order requirs U.S. financial institutions to facilitate access to $3.5 billion of assets for the 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.

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 mid-August.

The country’s long-troubled economy has been in a tailspin since the Taliban takeover. 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.

The Taliban have called on the international community to release funds and help stave off a humanitarian disaster.

Afghanistan has more than $9 billion in reserves, including just over $7 billion in reserves held in the United States. The rest is largely in Germany, the United Arab Emirates, Switzerland and Qatar.

As of January the Taliban had managed to pay salaries of its ministries but was struggling to keep employees at work. They have promised to open schools for girls after the Afghan new year at the end of March, but humanitarian organizations are saying money is needed to pay teachers. Universities for women have reopened in several provinces with the Taliban saying the staggered opening will be completed by the end of February when all universities for women and men will open, a major concession to international demands.