Tehran, Iran, Oct.16
Trend:
Iran's National Development Fund supports state and private sector in the US sanctions era, Mahmoud Dodangeh, former deputy Minister of Economic Affairs and Commerce of the Ministry of Industry, Mining and Trade and a former board member of Iran’s National Development Fund (NDF) told Trend.
Citing the role of the National Development Fund during sanctions era and curtailment of foreign exchange earnings, Dodangeh said the fund is a major financial institution that has been set up for specific purposes and aims to help push forward the private sector and economic development both inside and outside the country.
"Naturally, when the government is struggling to finance various projects, the National Development Fund, given the considerable amount of resources it has, contributes to the country's economic growth in terms of financing,” Dodangeh said.
“Of course, the National Development Fund has strayed from its path in recent years, nonetheless, under the terms of sanctions, the role of the National Development Fund as a supporter of state and private sector is much more effective and has a significant effect on the development of new investments, completion Previous investments and economic recovery.”
US President Donald Trump in May withdrew from the 2015 nuclear accord with Iran, re-imposed economic sanctions against the Persian Gulf nation.
Some sanctions took effect from August 6, while those affecting the oil and banking sectors will start from November 4. Those sanctions would block banking channels, making payment for oil bought from Iran difficult as well as stop re-insurance cover to refineries processing such oi
Addressing the priorities for resource allocation, Dodangeh said that the main priority is the private sector, which has the ability to repay the fund's resources, which means, the Fund cannot allocate its resources in foreign currency and accept the repayment in rial, so the companies with export approach and currency revenues can use the Fund`s resources.