World Bank backs using $280m in frozen funds for Afghanistan

WASHINGTON: The World Bank’s board has backed transferring$ 280 million from a frozen trust fund to two aid agencies to help Afghanistan manage with a brewing philanthropic extremity after the US pullout, two sources familiar with the matter said on Wednesday.

The 31 benefactors to the World Bank- administered Afghanistan Reconstruction Trust Fund (ARTF) must authorize the transfer before the finances could flow to the World Food Programme and Unicef, the sources said. The benefactors were anticipated to meet on Friday, the sources said.

The World Bank board met informally on Tuesday to bandy transferring up to$ 500 million of the$1.5 billion in the ARTF to philanthropic aid agencies, people familiar with the plan said.

Afghanistan’s 39 million people face a cratering frugality, a downtime of food dearths, and growing poverty three months after the Taliban seized power as the last US colors withdrew from 20 times of war.

Afghan experts have said the aid would help, but big questions remain, including how to get finances into Afghanistan without exposing any financial institutions involved to US warrants.

While the US Treasury has handed “ comfort letters” assuring banks that they can reuse philanthropic deals, concern about US warrants continues to help passage of indeed introductory inventories, including food and drug.

Any decision to deflect ARTF plutocrat requires the blessing of all its benefactors, of which the United States has been the largest.

The White House and the Treasury had no immediate comment on the World Bank board’s countersign of transferring the finances to the World Food Programme and Unicef.

A World Bank prophet verified the bank’s board had bandied the issue and that the benefactors were to meet on Friday.

The board “ bandied an approach to transfer out finances from the. ARTF to philanthropic aid agencies with presence and logistics on the ground to enable introductory philanthropic support directly to the people in the country,” the prophet said. “ The ARTF Benefactors Steering Committee is listed to meet on Dec 3 to consider transfers out from the fund.”