Government Advisor: Iraq's Debt Does Not Pose A Burden On Financial Stability
Economy | 20/12/2025 Mawazin News - Baghdad: The Prime Minister's Financial Advisor, Mazhar Muhammad Salih, confirmed that
Iraq's external debt is 4%, which is within safe limits. He also indicated that both internal and external debt are within internationally accepted safe limits.
Salih stated, "Iraq's external public debt constitutes only about 4% of its GDP, a very low percentage compared to internationally recognized safe limits, which allow external debt to reach up to 60% of GDP." He added, "This means that Iraq is outside the circle of external debt overburden, which is clearly reflected in its stable credit rating at level B over the past years and up to the present."
He continued, "As for domestic public debt, the accumulated amount during the current government's term does not exceed 34 trillion dinars, a figure significantly lower than the hypothetical ceilings anticipated in the three-year budget."
He added, "The financial planning for that budget assumed annual borrowing levels nearly double what was actually achieved over the three years, meaning that the ratio of actual domestic debt to the planned amount did not exceed 15% during the implementation period of the three-year budget, as stipulated by Law No. (13) of 2023."
He pointed out that "the 2026 budget planning takes into account that the outstanding debt balance, particularly the inherited domestic debt accumulated over more than a decade, along with the remaining external debt, collectively constitutes only 31% of the total annual GDP. This percentage also falls within the globally safe range for financial stability and does not represent a structural burden on public finances."
He added, "The 2026 budget's reliance on a hypothetical borrowing ceiling is not a cause for concern; rather, it falls within the framework of sound risk management, particularly regarding the risks of global oil market volatility and its potential impact on planned revenue levels."
He pointed out that "this approach is reinforced by adopting a high level of fiscal discipline, the foundations of which are being laid in the draft federal budget law for next year, through controlling expenditures, enhancing non-oil revenues, and implementing high-level financial governance, while taking into account external shocks, especially those related to energy markets." https://www.mawazin.net/Details.aspx?jimare=271809