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 fifth Iranian month of Mordad (August 22, 2018) stood at $10.405 billion, showing eight 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 Mordad, from the total of $10.405 billion of foreign debt, $6.613 billion was mid-term and long-term debts and $3.792 billion was short-term debts, the report confirmed.

According to the same report, Iran’s external debt in the fourth calendar month of Tir stood at $10.668 billion which fell to $10.405 billion in Mordad, while it was $11.305 billion in Farvardin. The figures are showing the decreasing trend of the country’s debts to the foreign lenders.

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.

MA/MA