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Monday 10 February 2014
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President of NDFI Met  the IMF Delegation

President of NDFI Met the IMF Delegation

Hosseini announced the revision of the organizational structure of the National Development Fund of Iran and Establishment of Portfolio and Risk Committees, among other issues. Chairman of Board of Executive Directors of National Development Fund of Iran announced changes to the structure of the National Development Fund of Iran, setting up the Department of Economic affairs as well as ...

Hosseini announced the revision of the organizational structure of the National Development Fund of Iran and Establishment of Portfolio and Risk Committees, among other issues.


Chairman of Board of Executive Directors of National Development Fund of Iran announced changes to the structure of the National Development Fund of Iran, setting up the Department of Economic affairs as well as Portfolio and Risk assessment committees.

Dr. Seyed Safdar Hosseini, in a meeting with IMF delegates, elaborated on the legal framework of the Fund, comprising of three core bodies, Board of Trustees, Executive Board and Supervisory Board. Further referencing to Article 84 of the Fifth Development Plan, he added: the main objective and core philosophy of NDFI is hedging against the negative side effects of oil revenues on the economy and strengthening and supporting the private sector.


Investments in international financial and money markets

He added that the two main objectives of the National Development Fund of Iran is to turn a part of the oil revenues to wealth generating and productive assets and to maintain future generations’ share of the revenues. He also pointed out that to accomplish these goals; in accordance with the Articles of Association of NDFI, the resources will be directed towards investments with low risks and suitable returns.

Revised guidelines for granting loans from the National Development Fund resources

Dr.Hosseini gave news of a revision in the on-lending contracts with the agent banks and said: the mandates and policies have been revised to assure against any possible losses. Moreover, the necessary measures have been taken and arrangements made with agent banks to assure timely repayment of loans, while taking cautions in future lending to ascertain punctuality of payments.

NDFI Financial statements improve transparency

Doctor Hosseini stressed the need for further transparency in promotion of National Development Fund of Iran’s ranking among other SWFs with the aid of publication of financial statements and balance sheets and said: with consideration of the complexities in the operations of NDFI and variety in currencies, investments and contractual commitments, NDFI seeks to achieve a level of theoretical and applicable frame work to preparing financial statements.



Risk Management of the Resources

He added that based on contracts, agent banks, bear the risks involved in lending and are held accountable for repayment of loans. Agent banks will receive a predetermined commission for their services such as administrative operations, as well as a fee for doing the feasibility studies and assessing financial solvency of the borrowers.

Cerisola: " An array of organizations in Iran are pursuing financing through NDFI’s resources »

Martin
Cerisola head of the IMF delegation , has traveled to Iran in commitment to Article 4 of Advisory Services of IMF to member countries.

Cerisola said: acquaintance with NDFI’s acceptance of and commitment to Santiago Principles, transparency improvement, governance issues, determining policies and strategies, etc. are on the agenda of the IMF staff and more importantly is the issue revolving maintaining an accord between the activities of NDFI and the macroeconomics of Iran in line with oil exports cut by sanctions.

Martin Cerisola also emphasized on the negative consequences of sanctions, economic shocks and reduction in oil revenues and its effects on bank ratings; he also noted the problems banks may face may be transferred to the Development Fund.

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  • President of NDFI Met  the IMF Delegation

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