Increase in Iraq’s Internal Debt Amid Declining Public Spending
The Central Bank of Iraq has reported a notable rise in the country’s internal debt, which has increased by 2.9% over the previous month. As of November 2024, Iraq’s internal debt has reached 81 trillion dinars, up from 78.77 trillion dinars in October 2024.
The central bank attributes this uptick in internal debt primarily to a significant expansion in bonds issued to the public, which grew by 15.2%. Additionally, there has been a 2% increase in treasury transfers with the central bank, along with commercial banks and electronic transfers.
Within the same timeframe, loans from financial institutions and government banks remained stable, indicating no shifts in these lending practices.
In a contrasting trend, public spending experienced a substantial decline in November 2024. The reported spending fell by 15.15 trillion dinars, representing a decrease of 54.42%, with total expenditures dropping to 12.69 trillion dinars from October’s 27.84 trillion dinars.
This dynamic of rising internal debt coupled with decreasing public spending highlights significant shifts in Iraq’s financial landscape, warranting close observation by policymakers and economic analysts alike.
