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Middle EastDecember 5 2005

Batten down the hatches

With Iran’s new president laying down the law on interest rates as well as hiring and firing the heads of many state banks, the sector is bracing itself for a stormy period. Gareth Smyth and Najmeh Bozorgmehr report from Tehran.
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“These days will pass and we have experience surviving. After the 1979 revolution there were big changes among managers, so maybe we are set for a similar process.”

The words of a senior banker in Tehran – concern tinged with defiance and optimism – mark the end of a “wait and see” period in which private business and many government officials gave time for the new administration of President Mahmoud Ahmadi-Nejad to settle down.

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