1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).
1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.
1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.
-The Article of Association of National Development Fund of Iran (NDFI) has been approved under the 5th development program and its A.O.A. turned to a permanent law at the starting year of the 6th development program and publicly released.
Now the NDFI has an independent and legal identity as nongovernmental public entity.
-The architecture of its governance is based on three main pillars containing Board of Trustees, Board of Executives, & Board of Supervisors, combination of each of them is defined and their responsibilities are clear.
-According to current procedures of Sovereignty, through the Government’s introduction of emergency bill and Parliamentary approval, in some important items like “natural disaster” or “water management infrastructure” financing for Public Investment is possible and it might dominant some authorities of Board of Executives.
-At all, any loan to central government and other state owned enterprises has been banned by A.O.A. but currently facing to “serious budget deficit”, some portions of NDFI resources has been granted to Government, in absence of a defined fiscal rule on central government budget.