The Central Bank of Iraq published a clarification of public debt and deficit data reported in the media, stating that the planned deficit in Iraq’s three-year general budget law for 2023-2025 was IQD 191.5 trillion while the actual deficit over the same period was IQD 35 trillion. It said the deficit was financed domestically through bonds and remittances in line with the budget law, with actual borrowing equivalent to 18.2% of the planned deficit, and reported that the public debt-to-GDP ratio has not exceeded 43%. External debt payable was put at no more than USD 13 billion after excluding outstanding and unclaimed debts of the former regime, and the Central Bank of Iraq stated that Iraq has not defaulted on any obligation. Internal debt was reported at IQD 91 trillion, comprising IQD 56 trillion accumulated up to end-2022 and IQD 35 trillion added for 2023-2025, with most domestic debt held within the government banking system; specialist committees and international consulting firms are working to convert part of these debts into investment instruments within a national internal debt management fund. The Central Bank of Iraq also said it is working to develop an integrated view of financial sustainability for the coming years to support government reforms aimed at diversifying the economy, increasing non-oil revenues and avoiding fiscal deficits.
Central Bank of Iraq 2025-10-19
Central Bank of Iraq clarifies public debt and deficit figures, citing IQD 35 trillion actual deficit for 2023-2025
The Central Bank of Iraq clarified public debt and deficit data, noting a planned deficit of IQD 191.5 trillion for 2023-2025, with an actual deficit of IQD 35 trillion financed domestically. The public debt-to-GDP ratio remains below 43%, and external debt is capped at USD 13 billion, with efforts underway to convert internal debts into investment instruments to support economic diversification and fiscal sustainability.