Compensation for Ukrainian plane to be paid from development fund
Shargh newspaper has published a report stating that 200 million euros in compensation for the Ukrainian plane will be paid from the Development Fund. Experts believe that this cost should be covered by insurance companies and not from the Economic Development Fund.
The use of the Development Fund's foreign currency and rial accounts to finance government expenses is being discussed as a deviation from the fund's statute. The Development Fund is actually intended to provide credit and finance projects that have the "possibility of a return on investment in foreign currency."
In Iran's budget bill for next year, the budget foreseen for the Development Fund has practically become a place to meet the government's needs.
Sharq newspaper wrote in its report that the government is actually using the fund's foreign exchange and rial accounts to finance its "expenditure credits." Obviously, expenditure credits do not have a return on investment in foreign exchange.
The newspaper continued its report by writing that the 200 million euros in compensation for the downed Ukrainian plane is also to be financed from the development fund budget. The amount, which will be paid in foreign currency and, since it has no return on investment, is actually a deviation from the goals defined for the development fund.
The reason for paying compensation through access to financial resources foreseen for the Development Fund has been stated to be the limited capacity of insurance companies. It is obvious that the payment of such amounts must be provided by insurance companies.
Sharq Newspaper further wrote that the non-statutory use of the Development Fund is not limited to paying compensation in connection with the downing of a Ukrainian passenger plane by the IRGC air defense.
The Rouhani government is even planning to withdraw 125 million euros from the development fund to cover the cost of membership in international forums.
It is said that in this way, the non-statutory use of the Development Fund in the 1400 budget has increased tremendously.
According to statistics published by Sharq newspaper, the unauthorized use of the Development Fund's foreign currency account is 41 percent. The same newspaper also announced the rate of deviation related to withdrawals from the rial account as 45 percent.
Budget expert Hemmat Gholizadeh told Sharq newspaper: "The fund's own budget and its current expenses are not transparent. It seems that a group deliberately wants the fund to remain in a state of ambiguity."
Source: DW
