TEHRAN President Mohammad Khatami on Wednesday was sworn in for the second four-year tenure in office, predicting a brighter future for Iran.

"I swear by God before the Holy Qoran and the Iranian nation to guard the official religion, the Islamic Republic and the State Constitution," he said at a ceremony before top officials, MPs, foreign dignitaries and reporters in the Iranian Parliament.

He pledged to push ahead with his efforts to establish a "religious democracy" in Iran and bring reforms to state affairs, stressing that he would never back out from those promises.

"The main issue of the country today is the establishment of a religious democracy which has been the aim and fruit of the great Islamic Revolution," IRNA quoted Khatami as saying.

"If the religious democracy, which has been emphasized by the Supreme Leader (Ayatollah Seyed Ali Khamenei), is upheld, the society will remain immune from any damage," Khatami added.

The Iranian president vowed to "shun despotism and support freedom", adding he would try to protect the rights of the nation and individuals.

"I will try not to tell lies to the people, nor talk to nor treat them with arrogance... I will try not to give up to any pressures in my capacity to defend the basic rights of the people, legitimate freedoms, liberal press as well as civil institutions," Khatami said.

"I will try to rely again on logic and dialogue and shun violence in listening to people's demands", he said, adding he will not submit to any "violent currents."

He stressed his commitment to bring about a "political, cultural, social and scientific development as a prerequisite for an economic development."

The country should employ all its "abundant moral and material potentials" to overcome "chronic social, economic and technical backwardness", Khatami said, adding this required his reform plans are implemented both in the government and the public sector.

He, however, sounded upbeat about the economic prospects of the country, saying his government has taken "big strides" in the past four years to put behind the economic, social and cultural crises.

"Although the problems of the country are enormous, I see hopeful prospects for the country, thanks to its national capabilities, transparent plans as well as people's reserve," he said.

Khatami also defended his last tenure in office, saying his government has made big achievements in handling general affairs of the country.

He cited these achievements in remarkable rises in state revenues, decline in unemployment rates, progresses in banking and private sectors as well as the government's success in settling most of its debts.

Iran, a country of 63 million, is grappling with inflation estimated at over 11 percent while over 13 percent of its population remain unemployed.

The country's foreign debts are put at $7 billion. Some 80 percent of Iran's economy are dependent on petrodollars.

President khatami won a second landslide on June 8 by securing some 77 percent of the vote cast, a manifestation of the Iranians' unequivocal backing for his policies.

He was initially scheduled to take oath on last Sunday, but the investiture was postponed after the MPs did not vote for two of the lawyers to the post of the oversight Guardian Council.

The delay continued until the remaining two members to the council which constitutes of six lawyers and six clerics were elected by the Parliament.

The Parliament on Tuesday approved by a "relative majority" two lawyers to the Guardian Council, clearing the way for Khatami to take oath.

The Majlis, with reformists in the majority, and the Judiciary were in disagreement Saturday after lawmakers elected only one lawyer to the Guardian Council effectively rejecting five other nominees in two sessions.

The 12-member Guardian Council is a constitutional body composed of six jurists appointed by the Leader and six lawyers. The council's function is to oversee laws passed by Parliament to ensure conformity with Islamic teachings and the national Constitution.