⚠️ “Iraq’s Soaring Internal Debt: A Ticking Time Bomb?” 🧨

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⚠️ “Iraq’s Soaring Internal Debt: A Ticking Time Bomb?” 🧨

🗓️ Mawazine News – August 23, 2025

🔍 Key Highlights:

📈 Debt Explosion Warning
Economist Nabil Al-Marsoumi warns that Iraq’s domestic debt jumped from 70.5T IQD in 2023 → to 92.2T IQD by mid-2025 — a sharp increase in just 18 months.

🏦 47% of That Debt is now held via remittances deducted by the Central Bank, signaling tighter monetary control but rising risk.

💸 Debt Is Covering Operating Expenses — Not Investments
Instead of financing growth, this debt funds government salaries and administration, worsening Iraq’s rentier economy structure.

📉 Alarming Consequences Ahead:

📉 Weakened ability to repay and shrinking real government assets
💥 Rising inflation risks without monetary coordination
🪫 Slower economic growth due to banks preferring debt over lending to the private sector
⚖️ Confirmed on Live TV – Announced Exchange Rate: $6.02! – Take Advantage!🔊Domestic debt servicing (9.34T IQD in 2024) may reduce funding for essential social services

🛢️ And with most revenue still oil-dependent, any drop in oil prices could trigger a financial shock.

🧠 Why It Matters for RV Watchers & Investors:

🔁 Debt without productivity = economic instability
💸 Iraq’s monetary future depends on managing both reserves and debt wisely
🏛️ For the IQD to revalue sustainably, Iraq must fix its fiscal discipline and investment gaps

This is a reminder: reform must be real — not just cosmetic.