TEHRAN- According to the newest data released by the Central Bank of Iran (CBI), Iran’s debts to foreign lenders in the end of the fourth Iranian month of Tir (July 22, 2018) stood at $10.66 billion, showing 5.6 percent decrease in comparison with announced figure in the first Iranian calendar month of Farvardin (March 21- April 20, 2018), IRIB reported on Sunday.

In Tir, from the total of $10.66 billion of foreign debt, $6.72 billion was interim debt and $3.94 billion was long-term debt, the report confirmed.

According to the same report, in Farvardin the volume of external debt stood at $11.3 billion, sliding to $10.66 billion in Tir, the figure registered a 5.6 percent decrease.

External debt is the portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made.

Foreign debt as percentage of Gross Domestic Product (GDP) is the ratio between the debt a country owes to non-resident creditors and its nominal GDP.

As IRIB reported, Iran’s GDP was $431.92 billion in 2017, thus the ratio between the debt and GDP is around 2.5 percent, which is not big.

HJ/MA