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Ghazanfari: NDF to SWF, a Must

  • 22 June 2022
  • 09:08
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Ghazanfari: NDF to SWF, a Must

Mehdi Ghazanfari in a meeting with NDF Experts elaborated on flow of resources to NDF and stressed on the need to change National Development Fund to a Sovereign Wealth Fund.

According to a report by NDF Public Relations Department, stressing on the need for some changes in the Fund's governance methods stated in the 7th Development Program and the need to change NDF to a Sovereign Wealth Fund, NDF Executive Board Chairman said, "NDF participation in the investment market does not mean enterprising." 

In a training session, attended by the Fund's managers and experts, on "NDF Staff Individual and Organizational Development", Ghazanfari added, "Due to some problems in the Articles of Association, the Fund is getting far from its objectives and the governments have repeatedly withdrawn from the Fund once they have faced budget deficit. This is why, we believe that aimed at realizing the Fund's main objective, i.e. protecting the next generation's share from the national wealth, the National Development Fund must turn into a Sovereign Wealth Fund", added Ghazanfari.

NDF Executive Board Chairman continued," We always oppose using the principal the Fund's assets. When sovereign resources are turned into money and then used, the principal is practically used. The Fund disagrees with such an approach and we emphasize on using the earnings of the assets".

Highlighting the need for some changes in the Fund's governance methods and the need to change NDF to a Sovereign Wealth Fund, Chairman Ghazandari added, "In case all earnings from the sale of oil and gas are deposited to the fund, NDF would manage to participate in economic activities out of the interest gained". He then noted, "to achieve our objectives and making significant achievements, we suggest a 40-percent deposit of the oil earnings, deposit of parts of earnings from export of raw materials, disposal of non-productive assets, reform in managerial structure of the Fund and Board of Trustees, effective presence in domestic and international monetary and financial markets,  investment in economically-justified projects, FX depositing of Fund's resources inflow in some elite banks and granting financial facilities out of these deposits", says the report by NDF Public Relations Department.


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