Stock Market – NDF allocates $238m to stabilize stock market

TEHRAN- Iran’s Nationwide Improvement Fund (NDF) has paid 10 trillion rials (about $238.09 million) for the stabilization of the nation’s stock exchange market, the board chairman of the Capital Market Stabilization Fund instructed IRNA on Sunday.

Mohammad-Ebrahim Agha-Babaei stated that 10 trillion rials was transferred from the Nationwide Improvement Fund to the Capital Market Stabilization Fund on Thursday, November 26.

It was beforehand introduced that one % of the Nationwide Improvement Fund’s reserves was speculated to be transferred to the Capital Market Stabilization Fund, to stabilize the stock market, and produce development again to this market.

The settlement that had been raised for a while on the problem of depositing some reserves of the Nationwide Improvement Fund within the Capital Market Stabilization Fund was accompanied by some issues and ambiguities on the a part of the Nationwide Improvement Fund, which led to delays in its implementation, Agha-Babaei famous.

He stated that the Nationwide Improvement Fund was set to allocate sources to the Capital Market Stabilization Fund in a number of sections, including that the sources allotted to the Capital Market Stabilization Fund are a type of facility that’s repaid yearly at an rate of interest of 12 %.

Within the first half, the Nationwide Improvement Fund has deposited 10 trillion rials with the Capital Market Stabilization Fund at an rate of interest of 12 % for a interval of 5 years, which will be prolonged, he added.

In line with Agha-Babaei, this may be optimistic for the capital market and, if crucial, can be utilized to extend liquidity within the stock market.

He went on to say that the Capital Market Stabilization Fund has requested the next quantity from the Nationwide Improvement Fund, and new funds might be deposited quickly if agreed.

These sources had been deposited within the Capital Market Stabilization Fund on Thursday, December 26, and haven’t but performed a job within the development of the capital market, he acknowledged.

MA/MA