A former MP warns against external borrowing: It will drown Iraq in new debts and threaten future generations.
A former MP warns against external borrowing: It will drown Iraq in new debts and threaten future generations.
5-14-2026
Information / Special..
Former MP Bassem Ngheimish warned on Thursday against “resorting to external borrowing to address the financial crisis in the country,” explaining that “while Iraq has been seeking for years to settle its external and internal debts, there is increasing talk about turning to the International Monetary Fund for loans,” which could “strangle Iraq with debt again.”
Nghimish told Al-Maalomah that “any additional debt will have serious consequences for the country,” and will “make matters worse,” as he put it, since it will be “accompanied by additional interest,” noting that “resorting to external debt adds new burdens to the state, the effects of which will extend to future generations.”
He added that “the government’s current task is to stop the expansion of debt, reduce public spending, and find real alternatives to oil revenues,” noting that “the biggest challenge facing the new government is the economic challenge, which requires a clear economic vision to address all financial crises.”
Nghimish explained that “the financial crisis in the country is not a coincidence or a result of the events in the Strait of Hormuz only, but it is a crisis that has been ongoing for years due to the absence of visions, strategic plans and real solutions.”
Nughaimish pointed out that “the new government program does not include effective solutions to the financial and economic crisis,” which “puts Iraq on the brink of collapse,” especially if “the government resorts to raising the dollar exchange rate to address the financial crisis.”
A source close to the International Monetary Fund reported on Thursday that Iraqi officials had contacted the Fund regarding obtaining financial assistance as a result of the ongoing conflict in the Middle East.
The Iraqi government needs between 6 and 8 trillion dinars monthly to cover salaries for employees, retirees, and the social safety net, while the actual salary ceiling is around 6 trillion dinars, equivalent to approximately $4.6 billion, according to Ministry of Finance data for December 2025.
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