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U.S. moves to free $7 billion in Afghan assets to aid Afghan people, 9/11 victims -officials -Breaking

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© Reuters. FILEPHOTO: A Afghan salesman poses for customers at the Kabul center, Afghanistan on December 5, 2021. REUTERS/Ali Khara/File Photo

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By Andrea Shalal

WASHINGTON (Reuters). – Sources close to the matter said that the U.S. will free 50% of $7 billion frozen Afghan reserves in the United States on Friday in order to help the Afghan people, but not allow Taliban access.

According to sources, a multi-step plan allows the remaining half to be held in the United States. This is subject to litigation from U.S. terrorist victims, as well as relatives of people who were killed in the September 11, 2001 hijacking attacks.

This comes amid growing pressure on Congress for the Biden Administration to freeze Afghan reserves to resolve the grave economic crisis facing Afghanistan. Afghanistan is in severe recession and liquidity crisis.

According to sources, President Joe Biden will sign Friday’s executive order that blocks property of Afghanistan’s central bank in the United States. This will require the transfer of funds to a Federal Reserve Bank of New York consolidated account.

The U.S. government will work to ensure access to $3.5 billion of those assets for “the benefit of the Afghan people and for Afghanistan’s future,” said one of the sources, without providing details.

Federal courts must make decisions regarding the funds remaining, as some 9/11 families have issued execution writs against the assets. The sources stated that plaintiffs will have the right to have their claims heard in court.

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