The National Development Fund of Iran (NDFI) deposited 10 trillion rials ($33 million) with the Capital Market Stabilization Fund (CMSF) on Wednesday.
“This was in line with a previous agreement based on which NDFI deposits money with the CMSF at regular intervals,” Amir Mahdi Saba’ie, managing director of the stabilization fund said, the Securities and Exchange News Agency reported.
The CMSF was created in 2017 to help resolve the credit crunch in the bourse.
Based on an earlier NDFI decision, the money is given as loan at 12% to be repaid in five years but the maturity date can be extended. The CMSF is responsible for paying the principal amount and interest.
Alireza Kangarloo, manager of NDFI’s public relations office, confirmed the deposition, adding that the wealth fund has a commitment to pay 120 trillion rials ($400 million) to the stabilization fund.
“The NDFI so far has deposited 50 trillion rials or 60% and the payments will continue,” he was quoted as saying by Fars News Agency.
The NDFI was given the go-ahead by the Supreme Council of Economic Coordination - the ad hoc economic decision making body comprising heads of the three branches of power - to directly invest in the share market.
As per NDFI articles of associations, it can invest in overseas financial markets and the domestic bourse.
NDFI is independent of the government and was set up in 2011 to curb dependency on oil and save a percentage of the earnings from oil and gas exports for future generations.
The fund lends to the nongovernment public sector, private firms and cooperatives in need when government revenues are low.
