The highest since 2003... Iraq's public internal debt exceeds the barrier of 70 trillion dinars

POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]

[size=52]The highest since 2003... Iraq's public internal debt exceeds the barrier of 70 trillion dinars[/size]

[size=45]The “Future Iraq” Foundation for Economic Studies and Consultations revealed that the Iraqi government’s general internal debt exceeded the barrier of 70 trillion dinars at the end of 2023, rising by 1.5% compared to 2022, which is the highest number reached by Iraq’s internal debt since 2003.[/size]
[size=45]The institution stated in a report that the highest growth rate in public internal debt occurred in 2020, as it jumped from 38 trillion Iraqi dinars at the end of 2019 to 64 trillion Iraqi dinars at the end of 2020, an increase amounting to 26 trillion dinars, with an increase rate of 67%, indicating that public debt It decreased by a “small” amount in 2022 and rose again in 2023, exceeding the barrier of 70 trillion Iraqi dinars.[/size]
[size=45]According to the report, the internal debt was distributed between loans from commercial and government banks, which amounted to approximately 37% of the total debt, and approximately 62% from the Central Bank of Iraq as obligations of government institutions.[/size]
[size=45]The institution indicated in its report that the public debt represents 19% of Iraq’s gross domestic product, and if the external debt, amounting to 40 trillion Iraqi dinars, is added to it, the total debt amounts to approximately 110 trillion Iraqi dinars, meaning it represents 29% of the gross domestic product. This is a fairly acceptable percentage compared to the percentages of other countries.[/size]
[size=45]The report noted that the main problem is that most of these debts are operational expenses, not investment, meaning that these debts cannot be recovered from the investment projects that were supposed to be established to contribute to increasing the domestic product and thus contribute to returning them to their creditors, warning that... The continuation of these internal debts without plans to pay them costs the state budget additional expenses represented by the interest amounts that internal and external government institutions place on these debts.[/size]
[size=45]The report suggested to the Iraqi government either to extinguish internal debts as they are non-recoverable debts, or to develop a clear plan to extinguish them and transform them into productive debts by paying off previous debts, and benefiting from new debts whose goal is investment and development capable of increasing the domestic product of various sectors, and contributing to generating premiums. Debts and their interest come exclusively from the proceeds of these projects.[/size]
[size=45][You must be registered and logged in to see this link.]