TEHRAN. Sept 8: (ran is to resort to public borrowing for the first time since the 1979 Islamic revolution to finance development projects amid economic troubles, central bank Governor Mohammad Hussein Adeli said Wednesday. re|X>rts AFP.

Adeli. quoted by newspa-pe: s here, said Iran's state-owned banks had been authorised to issue bonds to finance certain industrial and infrastructural projects.

These bonds, baptised partnership deeds," will return a fixed interest with variable bonus. The deeds, with or without a name, will be offered on the country's stock market.

Religious leaders have approved the move which is con-

sidered to be an Important step in the free-market policies of President All Akbar Hashemi Rafsanjani.

After the revolution Issuing state and other treasure bonds was considered an unislamic practice and was banned from the country’s Islamic banking system, introduced in 1979.

The first bonds will be issued shortly to raise 75 billion rial (30 million dollars) towards financing a major urban project by Tehran municipality. The project will take off on September 23 by the country's main state bank, Meili. Adeli said.

Other projects could be launched on borrowed public "money if the first bid proves successful, he added.