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Iran To Guarantee Foreign Investment, Despite Sanctions

An Iranian oil rig in the Caspian Sea. Iran is a major oil exporter, but sanctions have taken a toll on the industry.
TEHRAN (Reuters) - Iran's Central Bank will guarantee foreign investors a return of 10 percent on their capital, an Iranian newspaper reported today.

Sanctions against Iran have either prevented or discouraged companies from many countries, especially the United States and Europe, from investing in Iran, the world’s fifth biggest oil exporter.

“Iran Daily” quoted Central Bank Governor Mahmud Bahmani as saying the new policy was aimed at attracting investment during a time of economic crisis in many parts of the world.

"Iran will pay a guaranteed 10 percent interest on foreign investment…the Central Bank and Economy Ministry will guarantee the return of the principal and capital profit," Bahmani was quoted as saying.

He did not specify if the guarantees would apply to investments in particular sectors.

On June 9, the UN Security Council passed a fourth round of sanctions on Iran, aimed at pressuring it to curb its nuclear enrichment activities.

Iranian President Mahmud Ahmadinejad dismissed the sanctions as no worse than "pesky flies," but some economists say the measures -- and tougher action expected soon from the United States and the European Union -- will add to Iran's economic strains.