New Cooperative Bank on Agenda

Iran Chamber of Cooperatives plans to establish a new bank, the head of the chamber announced.  “Tose’e Ta’avon Bank (Cooperative Development Bank) cannot support the cooperatives sector due to capital shortage,” Fars News Agency also quoted Bahman Abdollahi as saying. In January, Tose’e Ta’avon Bank received 1 trillion rials ($25.9 million) by the Ministry of Economic Affairs and Finance to help increase its capital. “The establishment of the new bank, however, faces a regulatory hurdle, as the Central Bank of Iran refuses to grant licenses to any new bank,” he said, adding that the chamber is following up the issue through negotiations with CBI.  Abdollahi referred to Article 44 of the Iranian Constitution, which calls for the privatization of major state-owned companies as a viable reason for the expansion of cooperatives sectors.