Two sources familiar with the subject said on Wednesday that the World Bank’s board has approved moving $280 million from a frozen trust fund to two relief organizations to help Afghanistan cope with a looming humanitarian disaster following the US exit.
Before cash may move to the World Food Program and UNICEF, the 31 donors to the World Bank-managed Afghanistan Reconstruction Trust Fund (ARTF) must approve the transfer, according to the sources. The contributors were scheduled to meet on Friday, according to the sources.
The World Bank board met informally on Tuesday to consider moving up to $500 million from the $1.5 billion in the ARTF to humanitarian aid organizations.
Three months after the Taliban seized power as the last U.S. forces withdrew from a 20-year war; Afghanistan’s 39 million people confront a collapsing economy, a winter of food shortages, and rising poverty.
The aid would help, according to Afghan analysts, but there are still many questions, such as how to transfer monies into Afghanistan without exposing any financial institutions implicated in US sanctions.
While the US Treasury has issued “comfort letters” promising banks that humanitarian transactions can be processed, concerns about US sanctions continue to obstruct the passage of even essential commodities such as food and medication.
Any decision to redirect ARTF funds must be approved by all of the organization’s donors, the largest of which is the United States.
The White House and Treasury did not respond to a request for comment on the World Bank board’s approval of the cash being transferred to the World Food Program and UNICEF.
A World Bank representative acknowledged that the subject had been considered by the bank’s board of directors and that the donors would meet on Friday.
According to the spokeswoman, the board “discussed a way to move monies from the… ARTF to humanitarian aid organizations with presence and logistics on the ground to enable basic humanitarian support directly to the people in the nation.” “On December 3, the ARTF Donors’ Steering Committee will meet to discuss transfers out of the fund.”
