Iraqi government: Internal and external debts within safe limits
Iraqi government: Internal and external debts within safe limits
2024-12-02 00:36
Shafaq News/ The Prime Minister’s advisor for financial affairs, Mazhar Mohammed Salih, confirmed on Monday that Iraqi debts constitute only 35% of the gross domestic product.
Saleh told Shafaq News Agency, “All of the outstanding internal and external debts still do not exceed 35% of our country’s GDP, which means that they are within the safe limits of global economic stability standards.”
He added, “We should not be too concerned about the issue of the internal public debt and its increase to more than 70 trillion dinars, which is within the standard limits for stability according to the European Union standards that allow the sovereign debt to reach 60% of the gross domestic product.”
Saleh pointed out that “more than 90% of the domestic debt is held by the government banking system and is borrowing from within government funds and for the benefit of the federal general budget.”
He added, “This indicates that the market is not concerned at all with domestic sovereign debts, as domestic debt represents operations within the government’s balance sheet, so to speak, and does not pose any sovereign financial risks at all. The efforts of the financial and monetary authorities are combined to adopt a precise policy to achieve the common financial goals in the issue of financial consolidation, the basis of which is not to expand the annual financial deficit in the budget and to gradually reduce the size of the sovereign debt balance to the gross domestic product.”
The Central Bank of Iraq revealed that domestic debts rose in 2024 to more than 73.3 trillion dinars.
shafaq.com
