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.
RFE/RL Iran Report
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