CBI: Public Debt Ratio Does Not Exceed 43 Percent and Remains Within Safe Limits

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The Central Bank of Iraq (CBI) announced on Sunday, 19 October 2025, that the public debt ratio does not exceed 43 percent, confirming that it remains within internationally recognised safe limits.

In a statement, the Bank clarified that the planned deficit in the three-year federal budget law, approved by the Iraqi Parliament for the years 2023, 2024, and 2025, amounted to 91.5 trillion dinars, while the actual deficit for the same period reached 35 trillion dinars. This amount was covered internally through bonds and transfers in accordance with the provisions of the budget law.

The Bank noted that actual borrowing accounted for only 18.2 percent of the planned deficit, reflecting the high level of coordination between the Government and the Central Bank in managing public debt and preventing it from reaching the upper limits authorised in the budget.

It further added that outstanding external debt does not exceed $13 billion, excluding unresolved and unclaimed debts dating back to the former regime. The Bank affirmed that Iraq has not defaulted on any of its obligations, maintaining an excellent financial reputation both regionally and internationally.

According to the statement, domestic debt currently stands at 91 trillion dinars, comprising 56 trillion dinars accumulated by the end of 2022, and 35 trillion dinars in debts related to the three-year budget period (2023–2025). The majority of this debt is held within the government banking system.

The Central Bank also indicated that, in light of existing government accounts and deposits in state-owned banks, specialised committees and international consultancy firms are working to convert part of this debt into investment instruments under a national fund for managing domestic debt — aiming to transform obligations into investment opportunities.

The Bank emphasised that the public debt-to-GDP ratio of 43 percent remains moderate and sustainable according to international standards, posing no burden on the national economy.



PUKMEDIA