Home World U.S. tightens Taliban financial sanctions… IMF stops supporting 500 billion won

U.S. tightens Taliban financial sanctions… IMF stops supporting 500 billion won

by news dir

The Taliban occupy the Afghan presidential palace. yunhap newsUS financial sanctions against the Taliban, an Islamic militant group that occupied Afghanistan, have been in full swing.

According to Reuters on the 18th (local time), the International Monetary Fund (IMF) announced on the same day that it had stopped providing aid to Afghanistan, including new funds worth $440 million (about 515.8 billion won).

This is because of the lack of transparency about the Afghan government after the Taliban took control of the capital Kabul.

An IMF spokesperson said in an emailed statement that “there is currently a lack of transparency about the Afghan government” and “disallows Afghan access to IMF funds, including the Special Drawing Rights (SDR).”

This decision was made under pressure from the U.S. Treasury Department, which has control over the fund. This is to prevent the Afghan share of the SDR scheduled for the 23rd from falling into the hands of the Taliban. SDR, also called ‘Paper Gold’, is the right to withdraw liquidity from the IMF.

“As always, the IMF moves according to the views of the international community,” an IMF spokesperson added.

Earlier, the International Monetary Fund (IMF) blocked Venezuela’s access to the SDR, refusing to recognize the government with the consent of more than 50 member states amid controversy over fraudulent elections for President Nicolas Maduro’s re-election in 2019. The same decision was also made in Myanmar, where the military took power in a coup d’état in February.

The IMF plans to distribute SDR worth 650 billion dollars (about 762 trillion won) to 190 member countries on the 23rd according to the ratio of stake in the fund. This is to improve the finances of poor countries that are in serious crisis due to the COVID-19 pandemic. Initially, Afghanistan was allocated $440 million.

Meanwhile, U.S. and Afghan government officials predicted that $10 billion of Afghan central bank funds would not fall into the hands of the Taliban because they were stored outside Afghanistan. The Biden administration also froze assets in the name of the Afghan Central Bank in the United States.

White House National Security Adviser Jake Sullivan said on the 17th that “the situation in Kabul is chaotic” and that it is too early for the US to decide whether to recognize the Taliban as the legitimate ruler of Afghanistan.

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