U.S. Treasury Unblocks Frozen Afghan Assets

(Interim government to control $217 million in assets) (410)

The United States is releasing Afghan government assets frozen in
1999, giving the new Afghan Interim Authority (AIA) control of about
$193 million in gold and $24 million in other assets, according to a
January 24 Treasury Department news release.

The assets had been blocked under an executive order that froze all
assets associated with the Taliban regime in Afghanistan.

"These funds will now be available to help stabilize the Afghan
economy, strengthen the operations of the central bank, and shape a
better future for the people of Afghanistan," Treasury Secretary Paul
O'Neill said.

Following is the text of the news release:

(begin text)

U.S. DEPARTMENT OF THE TREASURY
FROM THE OFFICE OF PUBLIC AFFAIRS
January 24, 2002

TREASURY SIGNS LICENSE UNBLOCKING FROZEN AFGHAN ASSETS

Late yesterday the Treasury Department signed a license authorizing
the Federal Reserve to unblock Afghan government assets frozen in 1999
under Executive Order 13129. The license, signed by Richard Newcomb,
Director of Treasury's Office of Foreign Assets Control, gives control
of the assets to the new Afghan Interim Authority (AIA). The license
will unblock approximately $193 million in gold and $24 million in
other assets of the Afghan Central Bank held at the Federal Reserve
Bank of New York.

The assets had been blocked under the 1999 Executive Order that froze
all assets associated with the Taliban regime. The Taliban, who seized
control of Kabul in 1996, were not recognized as the legitimate
government of Afghanistan by the United States or the United Nations.
The Secretary of State has certified that the AIA is the recognized
legitimate authority to operate the account. This follows action by
the Afghan Sanctions Committee of the United Nations Security Council,
which on January 18th removed the Afghan Central bank from its list of
sanctioned parties.

"This is how the blocking system was designed to work," said Treasury
Secretary Paul O'Neill. "The blocked assets are held until a
recognized regime is in place and the funds can be directed back to
the legitimate holders. These funds will now be available to help
stabilize the Afghan economy, strengthen the operations of the central
bank, and shape a better future for the people of Afghanistan."

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)