News ID: 259085
Published: 0339 GMT September 22, 2019

Iran sovereign fund loans unaffected by new sanctions: Official

Iran sovereign fund loans unaffected by new sanctions: Official

A member of the board of trustees at the National Development Fund of Iran (NDFI) said the company will continue to operate normally despite sanctions by the United States.

“The NDFI has already been affected by the consequences of oil and banking sanctions over the past months and thus the fresh sanctions that have directly targeted the fund will have no major impact on its performance,” said Mohammad Hosseini, Press TV reported.

Hosseini added that the NDFI, which reportedly holds over $120 billion in cash, has no tangible assets outside of Iran that could be affected by the American sanctions unlike sovereign funds in other countries which hold assets and bonds overseas.

He said the major Iranian fund will continue to provide loans and finances in foreign currencies to major projects inside of the country despite the sanctions.

Iran occasionally taps into the NDFI, which holds much of the country’s excess income from the sale of oil, to build infrastructure projects.

Drawing out some fund needs the approval of senior Iranian officials, including the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei.

The Leader approved cash withdrawal from the fund earlier this year when areas in western, southwestern and northern Iran needed financing for reconstruction after massive floods left thousands homeless.

A recent report by the ministry of transportation also showed that over $350 million from the NDFI had been secured for construction activities on a railway project southeast of Iran where India has also committed to major finances.

Hosseini went on to tell IRNA that financing infrastructure projects through the NDFI would continue normally despite fresh American sanctions.

“Extensive projects in the country have been launched or are being completed through resources from the fund,” he said, adding, “The new sanctions will have no impact on the process to provide foreign currency loans that they (projects) need.”

   
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