Iraqi government forecasts external debt decrease to $9 billion by 2024

Iraq's government spokesperson has announced a significant decrease in external debts expected for this year. However, the current internal debts are expected to rise considerably due to increased public spending.

Iraqi government spokesperson Basim Al-Awadi announced a notable reduction in the country's external debt. ‌He told Iraq's State News Agency (INA) on Monday that the debt decreased from US$19.729 billion in 2022 to US$15.976 billion in 2023 and projected to reach approximately US$8.9 billion by the end of 2024.

 This achievement comes from diligent financial measures implemented by the government. Al-Awadi highlighted the success of initiatives such as halting unproductive borrowing operations, restructuring debts, and directing resources towards strategic projects. These efforts aim to safeguard the Iraqi economy from future uncertainties and ensure sustainable growth.

A significant increase in internal debt flux counters the decline in external debts. Iraq's Central Bank (ICB) reports that internal debt has surged from 38.3 trillion dinars (US$29.4 billion) in 2019 to the current 73.2 trillion dinars (US$56.3 billion).

 Furthermore, Al-Awadi emphasised the government's commitment to fostering collaboration with the international community. By prioritising productive borrowing and providing sovereign guarantees for private sector projects, Iraq aims to attract foreign investment and stimulate economic diversification.