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National Development Fund of Iran proposes to pay all revenues from crude oil to fund

Oil&Gas Materials 14 May 2023 18:30 (UTC +04:00)
National Development Fund of Iran proposes to pay all revenues from crude oil to fund
Elnur Baghishov
Elnur Baghishov
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BAKU, Azerbaijan, May 14. The National Development Fund of Iran has proposed to the government, parliament and other relevant institutions in Iran that all revenues from Iran's crude oil exports be paid to the fund, head of the Board of Directors of the National Development Fund of Iran, Mehdi Ghazanfari told reporters in Tehran on May 14, Trend reports citing ISNA.

According to Ghazanfari, if the earnings obtained from Iran's crude oil export are paid to the fund, the National Development Fund will be able to invest in various sectors in the country. The income obtained from these investments can be given to the government as free financial assistance or loans. The National Development Fund is the only foreign currency-operated institution in Iran.

The chairman added that the National Development Fund of Iran is taking steps towards transparency regarding the fund's reserves, remaining debts, etc. Also, the fund held a series of discussions with the current Iranian government (which has been in power since August 2021) about the funds to be paid into the fund, and it obtained positive results in this direction.

Ghazanfari said that the National Development Fund's total assets, receivables and other funds are $150 billion worth. Over the past years, the fund has invested $100 billion in various facilities and others within the framework of various projects.

He also noted that the previous several Iranian governments have borrowed $40 billion from the National Development Fund, and this debts have not yet been repaid. It is expected that these funds will be returned to the fund as a result of discussions with the current Iranian government. Currently, the National Development Fund of Iran has $10 billion.

Reportedly, Iran's budget bill for the current Iranian year (March 21, 2023 through March 19, 2024), envisages the daily sale of 1.4 million barrels of crude oil at an average price of $85 per barrel. The budget envisages payment of 42 percent of the revenues from Iran's crude oil sales to the National Development Fund of Iran.

Currently, Iran exports 1.3 million barrels of crude oil daily.

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