Significant Reduction of Iran's Foreign Debt to Approximately Five Billion Dollars

The Central Bank of Iran, in its latest report, has addressed the financial status of the country over the past 11 months, highlighting a significant reduction in the country's foreign debt. According to this report, Iran's foreign debt was $16 billion and 831 million in 2005, at the beginning of Mahmoud Ahmadinejad's presidency, and it reached about $23 billion in 2010, but has been decreasing since then. By 2013, Iran's foreign debt had dropped to $6 billion and 665 million, and by the end of January last year, it had decreased by another $1 billion and 422 million. The total foreign debt of the country was $5 billion and 233 million as of the last 11 months. Among this, Iran's short-term foreign debt is reported to be $480 million, while long-term debt is $4 billion and 754 million. The report also discusses the financial balance of the country's banks, indicating a worsening financial balance. The Central Bank states that the total debt of banks to the Central Bank increased by nearly 43% at the end of January 2015 compared to March 2014, reaching about 85 trillion tomans. Meanwhile, the public sector's debt to banks also grew by over 31% in the 12 months leading to January last year, reaching 98 trillion and 217 billion tomans. The report mentions that the total foreign assets of banks are 196 trillion and 135 billion tomans. The total assets of banks exceeded 1,541 trillion tomans, with a growth rate of 15.7% assessed in the eleven months leading to January. In this context, Fars News Agency, citing the Central Bank report, stated that 'in the non-governmental banks and credit institutions sector, debt to the Central Bank is very concerning, as the total debt of non-governmental banks and credit institutions rose from 2 trillion and 116 billion tomans at the end of March 2014 to 19 trillion and 449 billion tomans at the end of January 2015.' Thus, the debt of non-governmental banks and credit institutions to the Central Bank has increased eightfold in one year. The report notes that during the period from March 2014 to January 2015, more than 25 trillion and 420 billion tomans were added to the total debt of banks to the Central Bank, with specialized banks (export development, housing, cooperative development, industry and mining, agriculture) accounting for 371 billion tomans, state commercial banks (Melli and Sepah) 7 trillion and 717 billion tomans, and non-governmental banks 17 trillion and 332 billion tomans.