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The USA and Switzerland are strengthening their cooperation: they have set up a foundation to manage the blocked funds from the Afghan central bank.
The Swiss State Secretary Livia Leu is currently in the USA. Yesterday she met US Deputy Secretary of State Wendy Sherman in Washington for talks and signed a memorandum of understanding that institutionalizes the so-called strategic partnership dialogue with the United States. An annual exchange between Switzerland and the USA is now to take place.
The talks between Leu and Sherman were about advancing bilateral relations, but also about strengthening strategic cooperation in finding solutions to global problems. A concrete example of this is how Switzerland was able to get involved to find a solution for the Afghan central bank’s funds that are blocked in the USA.
Sherman welcomed her with open arms, says Leu. She received particular recognition for Switzerland’s commitment in the case of Afghanistan. Since the Afghan government was overthrown a year ago, billions of dollars in the Afghan central bank have been frozen in the United States.
Foundation established for Afghanistan
“We have worked closely together on Afghanistan in recent months,” says Leu. The Fund for the Afghan People was set up this week. This foundation, based in Geneva, has the purpose of taking over part of the funds of the Afghan central bank, protecting them, preserving them for the future and spending some of them. Switzerland is represented on the Board of Trustees.
“We were able to get involved insofar as these funds are managed in a foundation in Switzerland,” explains Leu about the commitment. The funds themselves would then go to the Bank for International Settlements (BIS). Funds totaling around 3.5 billion US dollars are to be used by the foundation to promote economic stability in Afghanistan, for example to service debts to international organizations or to finance electricity imports.
This solves a problem for the US government that it could not have solved on its own and for which it has been heavily criticized. But first a way had to be found to prevent the money from falling into the hands of the Taliban.
USA Grateful for Good Offices
Leu says her counterpart Sherman emphasized in the conversation that Switzerland is the only country that has the financial, political and legal know-how to find such a tailor-made solution. “It is positively noted when you dare to do something unconventional in the common interest,” says the Swiss State Secretary. The United States is very grateful for the solution. This cooperation is thus a concrete example of Switzerland’s tradition of good offices.
We are very different partners, Switzerland and the USA, and we can complement each other very well
The meeting between Leu and Sherman was the second of its kind. They could have very strategically discussed the possibility of working together, Leu says. “We are very different partners, Switzerland and the USA, and we can complement each other very well.”