Rising Internal Debt Levels in Iraq: Insights from Economist Nabil Al-Marsoumi
Economist Nabil Al-Marsoumi offered critical observations regarding the increasing internal debt in Iraq, urging the Central Bank to disclose annual growth rates rather than monthly figures. On February 16, 2025, Al-Marsoumi addressed this issue through his social media platform, prompting discussions on Iraq’s financial health.
The Central Bank of Iraq reported a 2.9% rise in internal debt, bringing the total to 81 trillion dinars for November 2024, up from 78.77 trillion dinars the previous month. Al-Marsoumi emphasized that an annual perspective is essential for a comprehensive understanding of the debt landscape, highlighting that internal debt escalated from 70.6 trillion dinars in 2023 to 83.049 trillion dinars by the end of 2024, translating to an annual growth rate of 17.5%.
Despite this increase in internal debt, public spending experienced a decline. The Central Bank’s report indicated that public spending dropped significantly, with November 2024 expenditure recorded at 12.69 trillion dinars, a stark reduction of 54.42% from the previous month’s figure of 27.84 trillion dinars.
The growth in internal debt can primarily be attributed to an uptick in government bonds, which rose by 15.2%, alongside a 2% increase in treasury transfers involving the Central Bank and commercial banks. Interestingly, loans from financial institutions and government banks remained relatively stable during this timeframe.
In summary, the disparate trends in Iraq’s internal debt and public spending raise significant questions about fiscal management and economic sustainability in the country.
