The move comes after a group of GOP lawmakers asked Treasury Secretary Janet Yellen to block the new Afghanistan government from accessing $450 million in aid.
By Político – Victoria Guida
Aug 18, 2021
The International Monetary Fund said it will prevent Afghanistan from gaining access to some $450 million in aid in the wake of the Taliban’s takeover the country, after the U.S. Treasury Department moved to block the funds.
The IMF, with U.S. backing, is issuing billions of dollars worth of new “special drawing rights,” a reserve asset that can be converted to government-backed money, to aid poorer countries. A portion of those assets was scheduled to be allocated to Afghanistan next week, an event that generated urgent pushback from Republican lawmakers.
“The potential of the SDR allocation to provide nearly half a billion dollars in unconditional liquidity to a regime with a history of supporting terrorist actions against the United States and her allies is extremely concerning,” 17 House members said in a letter to Treasury Secretary Janet Yellen on Tuesday.
An IMF spokesperson confirmed that, as of now, Afghanistan would not be able to receive the aid.
“As is always the case, the IMF is guided by the views of the international community,” the spokesperson said in an email. “There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access SDRs or other IMF resources.”
The U.S. and its allies have a controlling number of votes on the IMF board. In the past, the global institution has blocked aid to countries, such as Venezuela, when the board did not agree to recognize the government as legitimate.
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