Iraq’s internal debt reaches 68 trillion dinars due to the operating budget

The internal debt of the Iraqi government, through borrowing from public sector banks, has reached record levels, totaling 68 trillion Iraqi dinars with soft interests resulting from those loans.

The war against ISIS about six years ago was the most visible reason for this debt. It also grew during the pandemic due to the high operating budget. Economists estimate that the internal debt is worth at least fifty billion dollars.

They added that the solutions lie in liberalizing the economy from centralization towards a market economy in the institutions of the Ministry of Finance.