U.S. Reps. Andy Barr (R-KY) and French Hill (R-AR) on Aug. 20 introduced legislation that would ensure monies from the International Monetary Fund (IMF) would be barred from any Afghani governmental entity actively involved in or promoting acts of terror or the suppression of human rights.
Specifically, the IMF Afghan Recognition Assurance Act, H.R. 5055, which Rep. Barr sponsored and Rep. Hill cosponsored, would instruct both the governor and executive director at IMF to use the voice and vote of the United States to advocate that the fund not recognize the government of the Islamic Republic of Afghanistan under Taliban control, according to a bill summary provided by the lawmakers.
“The administration’s decision to withhold $450 million in SDRs [special drawing rights] is a start, but it does not fix the underlying concern that Taliban militants may still gain access to IMF resources,” Rep. Barr said. “My bill would use American muscle to cut off Afghanistan from the IMF, unless there is a national interest to reverse that decision and we can be sure that the government in Afghanistan is protecting women’s rights and not supporting terrorists.”
The IMF, backed by the U.S., is issuing billions of dollars worth of new SDRs, which are a reserve asset that can be converted to government-backed money to aid poorer countries.
A portion of the assets was scheduled to be allocated to Afghanistan earlier this month. However, Reps. Hill and Barr led 16 fellow Republicans in urging U.S. Treasury Department Secretary Janet Yellen to intervene in the allocation of $650 billion in SDRs before the IMF’s general allocation became effective.
“An estimated $450 million will be allocated to Afghanistan and potentially flow to the Taliban regime just days after their takeover from the elected Afghan government,” the members wrote in an Aug. 17 letter sent to Yellen. “The potential of the SDR allocation to provide nearly half a billion dollars in unconditional liquidity to a regime with a history of supporting terrorist actions against the United States and her allies is extremely concerning.”
In response, the Treasury Department moved to block the funds and the IMF on Aug. 18 said it would prevent Afghanistan from gaining access to the roughly $450 million in aid in the wake of the Taliban’s takeover of the country.