By Country / Iran
Iran Overrules Islamic Objections To Foreign Loans
November 13, 2005
13 November 2005 -- Iran's main legislative arbitration body has ruled that the country can use foreign bank loans.
Parliament had approved international financing earlier this year. But the Guardians Council, Iran's constitutional watchdog, later ruled that loans from foreign banks were associated with usury and were un-Islamic.
That verdict sent shivers through the investment community. Iran's fragile banking system is unable to support booming sectors, such as car-making and shipping.
However, the 12 November decision by the Expediency Council, which arbitrates disputes between parliament and the Guardians Council, is considered final.
(Reuters)