The Iraqi government is turning to American banks for loans to resolve its liquidity crisis.
The Iraqi government is turning to American banks for loans to resolve its liquidity crisis.
2026-08-30
Shafaq News – Baghdad
An informed source revealed on Sunday that the government intends to approach some American banks to obtain a financial loan as a quick solution to overcome the liquidity crisis, away from proposals to print currency.
The source explained to Shafaq News Agency that “the Ministries of Finance and Foreign Affairs are considering contacting some official American banks to obtain a financial loan that will be repaid from Iraqi oil sales in global oil markets, thus solving the liquidity crisis away from the proposal to print currency locally.”
The source added that “the Iraqi government sees this approach as a logical and quick solution amid the wave of crises that the region is witnessing,” without revealing further details.
The law on borrowing, grants and subsidies is an exceptional and temporary measure that Iraq is moving towards enacting, to compensate for the absence of the federal budget and to secure the necessary government spending.
The Iraqi parliament is waiting for the government to officially send the draft borrowing law to parliament, in order to avoid a financial gap and to ensure that the law does not differ from the vision and policy of the Iraqi government, according to the parliamentary finance committee.
Earlier, a special monitoring conducted by Shafaq News Agency showed that the volume of Iraqi currency issuance rose to 113.560 trillion dinars in May 2026, an increase of about 13.761 trillion dinars, or 13.8%, compared to the end of December 2025, amid escalating financial pressures that prompted the government to seek liquidity to ensure the payment of salaries and basic expenses.
shafaq.com
