State delays privatisation of three banks until 2008

The Iranian Privatisation Organisation (IPO) has delayed the sale of three banks that were due to be floated on the Tehran Stock Exchange this autumn.

The government agency has not said why it has postponed the privatisations of Mellat, Saderat and Tejarat.

The sale of the three banks is one of the centrepieces of Iran's programme to privatise 80 per cent of state-owned assets by the end of 2009.

'The IPO said the privatisations would take place in autumn, but has now said this has been postponed until next spring,' says Albert Frischenslager, managing director of consultants Middle East Strategies. 'With the Iranian approach to privatisation, it will probably take another five years.'

The state is retaining control of its most important banks: Bank Melli Iran, Housing Bank, and Sepah Bank.

Iran's banking sector has suffered from international sanctions, which have been led by the US.

Several major international banks have either pulled out of the country or are actively keeping their exposure to the economy limited.

The postponed sale of

the three banks is actually

the latest delay to hit the

privatisation programme.

In August, IPO delayed the flotation on the stock market of a minority stake in Telecommunications Company of Iran (MEED 24.8.07).

Vafa Ghaffarian, chairman of the telecoms firm, said in September that 80 per cent of the company would be privatised before the end of the Iranian year on 19 March 2008.