KABUL (TOLO News): The Federal Council and the foundation “Fund for the Afghan People” (Afghan Fund) have signed an agreement on privileges and immunities of the Foundation in Switzerland, which entered into force on February 1, 2024, the Federal Council of Switzerland said in a statement.
“With this agreement, the Federal Council recognizes the international significance of the Afghan Fund and ensures the protection and preservation of the fund’s assets in Switzerland,” the statement stated.
According to the statement, the agreement on privileges and immunities between the Federal Council and the Afghan Fund, was approved by the Federal Council on 15 December 2023.
“The conclusion of this agreement is based on the Host State Act and enables the Afghan Fund’s independence and functionality of the Foundation to be guaranteed and its assets to be protected and preserved,” the statement reads.
The Afghan Trust Fund was established in September 2022 under Swiss law, tasked with the secure preservation of assets totaling approximately $3.6 billion for the benefit of the Afghan people.
“The board of trustees of the Afghan Fund is responsible for determining the specific allocation of the funds. It ensures that the assets are utilised in a manner that benefits the people of Afghanistan, while also adhering to all relevant sanctions regimes,” the statement said.
“The board also ensures that funds are only transferred to the central bank of Afghanistan if the bank can demonstrate its independence from political influence. Furthermore, the central bank of Afghanistan must guarantee that it has taken appropriate measures to combat money laundering and terrorist financing.”
This comes as the Islamic Emirate stressed that the Afghan assets held in the Afghan Trust Fund belong to the people of Afghanistan and that it should be handed over to the Islamic Emirate.
“The assets of Afghanistan belong to our beloved people and without any condition, it should be handed over to the Islamic Emirate so we can use it as a strategic support to boost our economy,” said Abdul Latif Nazari, deputy Minister of Economy.
The economists said that considering the conditions mentioned in the agreement, the transfer of the assets to the Central Bank is difficult.
“The fulfillment of the conditions enforced will be very difficult and unacceptable. But there are concerns about the fraudulence of the Afghan assets and the Central Bank under the control of the Taliban,” said Mir Shikib Mir, an economist.
“Reduction of assistance for Afghanistan drives these assets to be spent. I think we will witness a situation like 2002. We didn’t have any money in Afghanistan in 2001.
We have collected $7.25 billion and $2.25 billion in assets,” said Sayed Masoud, an economist.
When the Islamic Emirate came to power, more than $9.5 billion of Afghanistan’s assets were frozen.
