Reduction in Foreign Debt Indicates Decreased Investment in the Country, Not Economic Growth

Dr. Reza Qoreshi, university professor and economist, said in an exclusive interview with Voice of America: “The reduction of foreign debts does not indicate the enrichment of countries or the repayment of loans, but rather means that foreigners are refraining from investing in that country.”

Stating that the United States, Britain, Germany, and Japan have the highest foreign debts, he added: “These debts represent the interest of foreign companies in investing in these countries, not borrowing money from foreigners.”

The leader of the Islamic Republic had said a few days earlier: “The country’s foreign debts have nearly reached zero, which indicates Iran’s economic progress.”

Ayatollah Ali Khamenei made these remarks while Iran’s Central Bank had announced last winter that the amount of foreign debt was more than eight billion and four hundred million dollars, a figure that according to Dr. Qoreshi is the result of unsuccessful investments by major Western companies after the signing of the JCPOA agreement.

Source: Voice of America