Melli Bank, Iran's second largest bank in market value, has announced that it will offer 80% of its shares to the private sector, thereby becoming the first government-owned bank to be privatized.

Bank president Ali Diwan Deri said the process would require two years to complete.

Melli Bank is under sanctions by both the U.S. Treasury and the European Union, meaning that it cannot conduct transactions in either U.S. dollars or in Euros.

The bank continues to maintain branches in Europe, including London and Hamburg, but they are registered as entities separate from Bank Melli, and conduct their business in Japanese yen, UAE dirham, and Swiss francs.

Source: Al-Sharq Al-Awsat, London, February 18, 2009