Second Iranian bank floats shares

Tejarat, Iran’s fifth largest commercial bank by capital, on Monday became the second state-owned bank to join the private sector by selling 6 per cent of its shares.

The sale came despite arrears which even the bank admitted amounts to about 20 per cent of its 10,400bn rials ($1.06bn) in capital.

Bank Tejarat ‘s financial situation is shared almost by all state-owned banks which are under pressure from the government to support the populist policies of Mahmoud Ahmadi-Nejad, the president. They are pressured to offer loans at 12 per cent despite 24.5 per cent of inflation.