How much is Iraq’s internal and external debt? An economic expert explains
How much is Iraq’s internal and external debt? An economic expert explains
2024-12-25 | 08:38
Economic expert Nabil Jabbar Al-Tamimi separated the total debt Iraqi Internal and external.
Al-Tamimi said in a statement to: Sumerian News, “The total debt reached Iraqi External and internal debts amount to approximately 96 trillion Iraqi dinars, of which 19.5 trillion dinars ($15 billion) are external debts, most of which are in favor of lending institutions. International And foreign low interest.
He added that “the remaining amount is approximately 77 trillion dinars in internal loans, most of which do not require repayment, and is approximately 52 in favor of the Central Bank, which previously financed the government through cash issuance through indirect financing methods via treasury transfers, i.e. in other words, approximately 25 trillion dinars in internal loans that must be paid to commercial banks and national bonds, and the remaining 52 trillion dinars in favor of the Central Bank.”
Regarding the most prominent external creditors of Iraq, Al-Tamimi explained that “it borrows Iraq Annually from financing institutions International Or foreign financing institutions, including the German, British, Japanese and World Bank funds, through the Finance Corporation. International The IMF, as well as the remaining debts in favor of Countries In the Paris Club and members outside the club associated with the legacy of the pre-2003 regime.”
As for the percentage of debts to the Iraqi GDP, Al-Tamimi pointed out that “the GDP Iraqi It is estimated at $250 billion, so the ratio of Iraq’s external debt to GDP is approximately 6%, which is a low ratio, and the ratio of total debts due to be repaid, excluding the debts of the Central Bank ($55 billion), to be 22% of GDP remains a reasonable ratio.”
As for the most prominent reasons for the accumulation of external and internal debts, he explained that “external debts are not considered Iraq Large, and most of these loans were used to finance investment projects, as for internal debts, the reason for their accumulation is due to internal policies. Iraqi “Which financed much of the deficit through cash issuance, especially during the war years 2014-2016 and the year of the Corona pandemic in 2020.”
Al-Tamimi pointed out that “there are two other types of debts that were not included in the above calculations:
the first, the unofficial debts of the Gulf states related to financing the Iran-Iraq war in the eighties, which are estimated at $45 billion.
The second, the debts related to the Iraqi-Chinese agreement, the details of which have not been disclosed.”
The economic expert concluded: “External and internal debts do not pose any risks to Iraq, with the exception of loans and debts related to the Iraqi-Chinese agreement, as the amount of interest on those debts or the guarantees provided is not known.”
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