Ali Movahednejad, Member of Board of Executive Directors and Deputy of Credit and Supervision on the Projects explains the role of NDFI in financing projects.
“Establishment of NDFI in 1390, at the peak of sanctions and hard currency constraints indicates that there is strong will and determination to cut the dependency of current government expenses on oil and turn oil and gas revenues into productive investments”.
The fact that the Government has no access to NDFI resources for covering its budgetary expenditures and that only non-government sectors enjoy the facilities, are among the advantages of NDFI which distinguishes it from the Foreign Currency Reserve Account (created in 1379).
Based on NDFI Articles of Association, non-government firm is defined as the one in which the share of non-government parties is not less than 80%. Irrespective of ownership rights, the same goes with the proportion of managers. If the ownership or managerial rights of state or state-owned firms exceed 20% in a firm, the company shall be deemed unqualified to enjoy NDFI resources.
The above mentioned conditions make a historic opportunity for private sector enhancement in making investments and as a result, sustainable development of the country. So the bulk of resources have gone to economic activities in the form of loans to manufacturing units and buyer’s/supplier’s credit. The main performance of this unit could be enumerated as follows:
· Transparency in extending facilities. All regulations, procedures and terms and conditions have been released and are available to public to prepare a level playing ground for all practitioners.
· The resources are granted as concessional loans to priority projects which are economically, technically and financially feasible.
· Examining the projects and the due diligence by the agent banks is done in the shortest of time.
· For further transparency and better management, the consolidated management system makes it possible to track and monitor granting loans, procedures, making payment and repayment and supervise the projects across the country from A to Z.
Since the inception of NDFI, some two years ago, 327 projects have enjoyed foreign currency loans amounting to 21 billion dollars and the 104000 projects have benefited from the loans worth 83000 billion Rials.
Ali Movahednejad, Member of Board of Executive Directors and Deputy of Credit and Supervision on the Projects explains the role of NDFI in financing projects.
“Establishment of NDFI in 1390, at the peak of sanctions and hard currency constraints indicates that there is strong will and determination to cut the dependency of current government expenses on oil and turn oil and gas revenues into productive investments”.
The fact that the Government has no access to NDFI resources for covering its budgetary expenditures and that only non-government sectors enjoy the facilities, are among the advantages of NDFI which distinguishes it from the Foreign Currency Reserve Account (created in 1379).
Based on NDFI Articles of Association, non-government firm is defined as the one in which the share of non-government parties is not less than 80%. Irrespective of ownership rights, the same goes with the proportion of managers. If the ownership or managerial rights of state or state-owned firms exceed 20% in a firm, the company shall be deemed unqualified to enjoy NDFI resources.
The above mentioned conditions make a historic opportunity for private sector enhancement in making investments and as a result, sustainable development of the country. So the bulk of resources have gone to economic activities in the form of loans to manufacturing units and buyer’s/supplier’s credit. The main performance of this unit could be enumerated as follows:
· Transparency in extending facilities. All regulations, procedures and terms and conditions have been released and are available to public to prepare a level playing ground for all practitioners.
· The resources are granted as concessional loans to priority projects which are economically, technically and financially feasible.
· Examining the projects and the due diligence by the agent banks is done in the shortest of time.
· For further transparency and better management, the consolidated management system makes it possible to track and monitor granting loans, procedures, making payment and repayment and supervise the projects across the country from A to Z.
Since the inception of NDFI, some two years ago, 327 projects have enjoyed foreign currency loans amounting to 21 billion dollars and the 104000 projects have benefited from the loans worth 83000 billion Rials.