TEHRAN – The latest data released by the Central Bank of Iran (CBI) show that the country’s foreign debt stood at $8.84 billion at the end of the fifth Iranian calendar month of Mordad (August 22), down 3.3 percent from $9.142 billion at the end of the previous year, IRIB reported.

From the total foreign debt, $6.36 billion was mid-term and long-term debts while $2.48 billion was short-term debts, the data indicated.

Iran’s external debts stood at $8.744 billion at the end of the first quarter of the current Iranian calendar year (June 20), down 4.35 percent from $9.142 billion at the end of the previous year, IRIB reported.

Some $6.733 billion of the total foreign debt in the mentioned period was mid-term and long-term debts while $2.011 billion was short-term debts.

External debt is the portion of a country's debt that is 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 a percentage of Gross Domestic Product (GDP) is the ratio between the debt a country owes to non-resident creditors and its nominal GDP.

Back in January, Deputy Minister of Finance and Economic Affairs Mohammad-Ali Dehqan Dehnavi had said the country’s foreign debts were very insignificant.

“Currently, the volume of Iran's foreign debt is extremely small due to the existing restrictions,” said.

The official noted that using foreign debts could be a positive opportunity, meaning that the government can borrow from abroad and invest inside the country.

According to Dehnavi most of the government’s debts are internal. Having external debts is important globally, but it is not currently important for Iran since the country has almost no foreign debts.

Iran’s external debt has been falling in recent years following a downward trend.

EF/MA