Iraq reports decline in domestic debt, public spending
According to data released by the CBI, Iraq's public spending totaled 9.35 trillion Iraqi dinars ($7.13 billion) in May, a 1.48 percent decline compared to 9.49 trillion Iraqi dinars ($7.24 billion) in April.
The country's public spending also declined compared to May 2024, when it reached 10.68 trillion Iraqi dinars ($8.15 billion), according to the CBI.
Iraq's domestic debt in May was 85.50 trillion Iraqi dinars ($65.26 billion), dropping 0.05 percent from 85.54 trillion Iraqi dinars ($65.29 billion) in April and up 8.56 percent from the same month in 2024, when it was 78.18 trillion Iraqi dinars ($59.65 billion).
The financial advisor to the Iraqi Prime Minister, Mazhar Salih, revealed in September that Iraq's foreign debts are less than $10 billion.
Iraq's foreign debts, which include both sovereign and foreign private sector obligations, originate from the Paris Club agreement settlements and date back to before 1990, adding that these debts must be paid by 2028.
In 2004, the Paris Club declared that it had achieved a deal to cut the $120 billion debt owed by Iraq by 80 percent over three years.
Salih confirmed last year that Iraq has paid all the loans it has taken from the International Monetary Fund (IMF) since 2003, a total of just under $8 billion.
Between 2003 and 2021, Iraq obtained several financing programs from the IMF, including emergency loans and long-term financial assistance, aiming to support the country's macroeconomic stability and financial reforms.
In 2016, the IMF approved a financial program worth $5.34 billion to support economic reforms in Iraq. Within five years, Iraq paid out the loan in full after obtaining two-thirds of the total.
Iraq sought a $6 billion emergency loan from the IMF in 2021; however, the loan was not granted because, at the time, it hadn't been linked to any of the IMF's initiatives.
Iraq's engagement with the IMF was intended to assist in addressing the economic issues brought on by the decline in oil prices, which were connected to fluctuations in the balance of payments, as well as to promote government reforms.
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