Financial Tribune- Bank Sepah has pledged to allocate some $37 million from the resources of the National Development Fund of Iran under its authority to environmental schemes in the form of low-interest loans.

According to Mohammad Kazem Choqazardi, CEO of the Bank Sepah, the amount will be paid as working capital to private and cooperative companies and NGOs.

"This year, Bank Sepah will supply the working capital for economically justified projects in the area of ecology," he was quoted as saying by IRNA.

The loans will be given with interest rates ranging from 10% to 16%.

Private companies active in the fields of water management and knowledge-based agricultural conversion and complementary industries located in designated regions will be eligible for the low-interest facilities.

"Only those institutions that at least 80% of their stocks belong to a private owner will qualify for the loans," Choqazardi explained.

The sovereign wealth fund is a reserve of a percentage of oil and gas revenues aimed at productive investment for future generation.

As per the current budget law, the share of the NDFI from oil and gas revenues has increased from 20% to 30%.

The finances are administered by qualified banks and paid to investors in the form of loans.