Assets Falling in Iran’s National Development Fund
Posted on 05/23/2023
Mehdi Ghazanfari, the Chair of Iran’s National Development Fund, said too many withdrawals have threatened the fund, which is supported by oil revenue. Ghazanfari says only US$ 10 billion is available to spend at this point because US$ 100 billion has been spent and another US$ 40 billion loaned out. Ghazanfari still lists the value of the fund at US$ 150 billion but that is questionable in light of his public comments.
Mohammad Baqer Nobakht, of the Budget and Planning Organization between 2016 and 2021, said all withdrawals were legal.
The fund was established as the Oil Stabilization Fund in 2000 before changing its name to the National Development Fund, and in 2011, it was decided that 20% of all oil revenue would be contributed to the fund. Critics suggest the fund has been used to plug budgetary holes which limited its investment value. Western sanctions have also cut into the bottom line.
