IMF Funding for the Taliban?
Billions of dollars in military equipment and vehicles aren’t the only assets the U.S. is leaving behind in Afghanistan as it makes its hasty retreat. On Monday “Afghanistan, Islamic State of” was credited with 310 million in new “special drawing rights” at the International Monetary Fund. That’s the equivalent of some $440 million.
The new SDRs are part of a $650 billion global allocation of IMF funny money that goes to all 190 members in proportion to their IMF quota. If countries wish to convert their SDRs to dollars, the U.S. has to borrow the money to give to them. The conversion creates a subsidized, perpetual loan. For a poor country like Afghanistan, the subsidy would be above 90% of the loan value.
Read more: WSJ