Iran's Sovereign Wealth Fund Allocates $15b to 20 Banks in 4 Months

EghtesadOnline: Iran's sovereign wealth fund entrusted $15 billion in foreign currency resources to state-run and private banks in the first four months of the current fiscal year (March 21-July 22).

News ID: ۷۴۵۷۶۸

01 August 2018

The latest report by the National Development Fund of Iran published on its official website shows that 20 lenders received $14.85 billion that will be handed out to applicants in the form of loans.

"So far, $13.15 billion have been doled out by 17 banks," the report said.

According to NDFI, the privatized Bank Mellat and government-owned Bank of Industry and Mine were the top recipients of its foreign currency allocations, as each of them received $2 billion. They were followed by the private Bank Pasargad and Tejarat Bank, each of which received $1.5 billion, Financial Tribune reported.

Bank Keshavarzi, the agent bank of the agriculture sector, Bank Melli, the nation's biggest bank, and Bank Sepah, Iran's oldest bank, each received $1 billion in foreign currency reserves from the development fund.

Post Bank, Saman Bank, Tose'e Taavon Bank, Bank Hekmat Iranian, Bank Refah Kargaran, Karafarin Bank, Middle East Bank, Export Development Bank of Iran, Sina Bank, Bank Saderat Iran, Parsian Bank, Ansar Bank and Tourism Bank rounded up the list of NDFI resource recipients.

"With the aim of supporting the private sector and playing an effective role in the development of the country, maintaining the resources of the fund as the share of future generations from oil and gas revenues, and turning them into productive resources, each year a major portion of the resources of the fund are allocated through banks to be allocated as foreign currency loans to applicants in the private and cooperatives sectors and non-government public entities," the fund wrote in its report.

NDFI last week announced in another report that it had deposited 14 trillion rials ($320 million) with six agent banks in the first four months of the current fiscal year.

According to that report, Bank Keshavarzi received the highest volume of NDFI deposits at 6.5 trillion rials ($148.40 million) to allocate as facilities to related ventures.

Interest rates for rial loans have been announced at 16% by the fund while agricultural and tourism sectors receive facilities with an interest rate of 14%. For less developed regions and knowledge-based projects, banks are allowed to hand out loans at a 4% rate lower than those given to other sectors.