Iran’s foreign debt was $8.14 billion on April 20, data released by the Central Bank of Iran (CBI) showed.
This was $650 million or 7.3% lower from the corresponding period in the last fiscal year that ended in March.
Medium and long-term debt was $5.93 billion, accounting for almost 72% of the total. Despite the decline in the long-term debt, short-term debt increased to $2.21 billion in the same period rising from $1.86 billion in April 2021, the Central Bank of Iran (CBI) said last week.
Short-term debt includes all debts with original maturity of one year or less as well as interest on long-term debt.
Due largely to the 2018 US economic sanctions that have made borrowing from international lenders impossible, Iran’s external debt is miniscule compared to most countries.
Tehran has been unable to attract foreign investment in recent years due to the tough sanctions, cumbersome regulations and economic uncertainty.
External debt in Iran averaged $15.543 billion from 1993 until 2020, reaching an all-time high of $28.64 billion in 2007 and a record low of $5.1 billion in 2014, according to Trading Economics, which sources financial and economic data from countries across the world.
Most of Iran’s foreign borrowing in the past three years was related to fighting the coronavirus pandemic. Tehran received $50 million from the World Bank to help the health sector cope with the brutal disease.
The OPEC Fund for International Development approved $500,000 in emergency grant to buy equipment to fight the plague.
In addition, Iran solicited multilateral development banks for funds, in which the country is a member, namely the Islamic Development Bank and the Asian Infrastructure Development Bank.
Last year, the Organization for Investment, Economic and Technical Assistance of Iran said the World Bank agreed to pay $90 million in financial assistance to help Iran cope with the pandemic.