Iran to guarantee foreign investment - report

TEHRAN (Reuters) - Iran's central bank will guarantee foreign investors a return of 10 percent on their capital, a newspaper reported on Saturday.

Sanctions against Iran have either prevented or discouraged companies from many countries, especially the United States and Europe, from investing in Iran, the world fifth biggest oil exporter.

Iran daily quoted Central Bank Governor Mahmoud Bahmani as saying the new policy was aimed at attracting investment during a time of economic crisis in many parts of the world.

"Iran will pay a guaranteed 10 percent interest on foreign investment ... the central bank and ministry of economy will guarantee the return of the principal and capital profit," Bahmani was quoted as saying.

He did not specify if the guarantees would apply to investments in particular sectors.

Last Wednesday, the U.N. Security Council passed a fourth round of sanctions on Iran, aimed at pressuring it to curb its nuclear enrichment activities.

Iranian President Mahmoud Ahmadinejad dismissed the sanctions as no worse than "pesky flies" but some economists say the measures -- and tougher action expected soon from the United States and the European Union -- will add to Iran's economic strains.

(Reporting by Hashem Kalantari; Writing by Robin Pomeroy)