Official: sanctions hinder Iran’s development fund to invest overseas

Business Materials 15 December 2012 14:05 (UTC +04:00)

Azerbaijan, Baku, Dec. 15/ Trend G.Mehdi/

Iran's National Development Fund has not been able to invest 20 percent of its assets overseas due to reasons, such as sanctions, ILNA quoted Mahmoud Dodangeh, member of the NDF's board of directors as saying.

Twenty percent of the NDF's assets should have been invested in projects overseas, he said, adding that the goal will not be achieved in the current Iranian calendar year, which ends on March 20, 2013.

However, negotiations are underway with countries, like Germany, Belarus, and China, to absorb the NDF's investments, he noted.

On December 8, Dodangeh told the Mehr News agency that the NDF has earmarked $17 billion for implementing different projects in agriculture, industry, and energy sectors.

Over $12 billion of the sum will be invested in the form of US dollar and nearly $5 billion in the form of Iranian rial, mot of which will be paid to the agriculture sector, he added.

On December 3, the NDF managing director Mohammad-Reza Farzin said that the fund has over $42.8 billion in cash.

He told the Fars News Agency that Iran transfers 20 percent of its oil revenues to National Development Fund.

He added that $11.5 billion of the sum had been allocated for supporting the private sector.

President Mahmoud Ahmadinejad has said that the National Development Fund's assets would hit $55 billion by the end of the current year.

According to the Fifth Five-Year Development Plan (2010-2015), the National Development Fund was established to transform oil and gas revenues to productive investment for future generations.

The United States slapped new sanctions on Iran on Thursday, targeting a handful of companies and individuals it says are providing materials and technology to Tehran's nuclear program.