Central Bank Governor: Iraq’s internal and external debts amount to approximately $150 billion

Central Bank Governor Ali Al-Alaq said that Iraq’s internal and external debt has reached approximately $150 billion, in response to a parliamentary question directed to him by MP Raed Al-Maliki.

In a statement issued on Saturday, Al-Maliki quoted Al-Alaq as saying that Iraq’s internal debt had risen to 91 trillion dinars, and its external debt had reached $54 billion.

He added that the budget deficit is too large to be covered by loans and bonds, noting that “there are no restrictions on the US Federal Reserve’s use of oil revenues.”

According to Al-Alaq, “The value of the bonds that Iraq purchased in the United States amounted to $11 billion.”

Meanwhile, MP Hadi Al-Salami announced that the Federal Court has initiated a questioning process with the House of Representatives against Prime Minister Mohammed Shia al-Sudani over his failure to submit the budget tables and final accounts for 2025.

The Central Bank of Iraq announced last Saturday that Iraq’s domestic debt had increased for the month of July 2025.

The bank stated in a report seen by Shafaq News Agency that “Iraq’s domestic debt rose in July to 90.30 trillion dinars, an increase of 2.91 percent compared to last June, which reached 87.74 trillion dinars.”

He added, “The debt also increased by 16 percent compared to the same period last year, reaching 76 trillion dinars.”

The bank indicated that “the reason for the increase in domestic debt is due to a 1.72 percent decrease in government bank loans in July compared to June.”

It’s worth noting that the Echo Iraq Observatory previously considered that oil sales were no longer sufficient to cover the state’s monthly running expenses, which amount to approximately 11 trillion Iraqi dinars.

The observatory stated in a press statement received by Shafaq News Agency that “current expenditures represent the largest portion of the state’s expenditures, amounting to 11,503,656,980,146 dinars,” indicating that “this amount, out of a total of 27 trillion dinars, represents the total expenditures of the licensing rounds, the Chinese agreement, and investment.”

Shafaq.com

Government Financial Advisor: The Ministry of Finance has begun preparing the 2026 budget.

The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, confirmed on Saturday that the Ministry of Finance has begun preparing the 2026 budget, while specifying the disbursement mechanism in the event that the budget cannot be approved. Salih told the official agency, “In accordance with the Federal Financial Management Law No. 6 of 2019, as amended, the Federal Ministry of Finance is proceeding with preparing the draft federal general budget law for the country for the fiscal year 2026.”

He pointed out that “in the event that it cannot be approved within the specified constitutional or legislative timeframes due to the upcoming parliamentary term, the government will undertake disbursements in 2026 on a monthly basis at a rate of 1/12 of the actual current expenditures for the year 2025, including spending on ongoing investment projects, external obligations, and other due expenses.”

He also stated that “the Financial Activity will continue to manage revenue collection and continue disbursing through the expenditure items specified under the aforementioned Federal Financial Management Law until the 2026 budget is approved by the House of Representatives. At that point, allocations will be released for any activities required by economic growth and sustainable development, including new investment projects and other emerging commitments.”

Burathanews.com

Rafidain Bank suspends loan applications from parliamentarians and employees.

An informed source revealed on Thursday that the government-owned Rafidain Bank has suspended applications for loans and advances allocated to employees, retirees, and members of the Iraqi parliament.

The source told Shafaq News Agency, “Many requests for loans and advances for employees and retirees have been suspended, especially those that were months old and have not been granted.”

The source revealed that “some parties are favored over others in the granting process, based on favoritism and nepotism.”

The source pointed out that “the bank is relying on paper-based transactions for granting loans and advances instead of the announced electronic system, which has angered employees and retirees.”

Since 2023, Rafidain Bank has begun disbursing installments of “loans for employees, members of the Interior and Defense Ministries, and retirees” electronically, directly via MasterCard, after completing the requirements. The disbursements are at an interest rate of approximately 5% per annum, with a repayment period of up to five years (60 months).

Shafaq.com

The International Monetary Fund expects Iraq’s economy to grow by 3.6% next year.

The International Monetary Fund (IMF) forecast on Thursday that the Iraqi economy will grow by 3.6% in 2026, amid improved economic performance in the region and rising investment and production levels.

The Fund’s forecasts were included in its report on the regional economic outlook for the Middle East and North Africa, which noted disparities in growth rates among countries due to differences in economic conditions and financial policies in each.

According to the report, Sudan topped the list of the highest-growing countries in the region, with a growth rate of 9.5%, followed by Qatar with 6.1%, the United Arab Emirates with 5%, and Egypt with 4.5%.

Mauritania followed with a growth rate of 4.3%, followed by Morocco with a growth rate of 4.2%, while Saudi Arabia and the Sultanate of Oman recorded an expected growth rate of 4% each.

Kuwait is expected to achieve growth of 3.9%, Iraq 3.6%, followed by Bahrain 3.3%, while Algeria and Jordan will achieve similar growth rates of 2.9%. Tunisia comes in last in terms of expected growth of 2.1%.

The IMF indicated that these forecasts depend on continued stability in oil prices, improved non-oil activity, and the implementation of economic and structural reforms aimed at enhancing productivity and diversifying sources of income in the region’s countries.

Shafaq.com

Prime Minister’s Advisor: The Central Bank is leading a comprehensive shift towards reform.

The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, confirmed on Thursday that Iraq’s commitment to international standards paves the way for the return of dollar transactions, attracting foreign investment, and expanding financial inclusion. He stressed that the path of banking reform is ongoing and irreversible. Salih told the official agency, “Iraq’s commitment to international standards and banking transparency means that the Iraqi financial system has entered a phase of radical reform, which enhances international confidence and qualifies it to be an active player in the global economy.” He pointed out that “the most prominent gains are not limited to the return of dollar transactions to national banks, but also include attracting investment and expanding financial inclusion.”

He added, “Adherence to international standards requires that banking institutions adhere to anti-money laundering and counter-terrorism financing rules, implement transparent accounting and oversight systems, and digitally transform the banking infrastructure, including electronic payment systems and unified financial reports.” He continued, “This also includes openness to sound international financial services by contracting with global companies to develop banking systems, particularly financial auditing and financial technology companies.” He added, “This commitment places Iraq on the map of the global financial system and gives it an opportunity to integrate with international correspondent banks.”

He also explained that “the gains that will benefit Iraq will also lead to the restoration of dollar transactions with international banks, after some Iraqi banks were deprived of them due to poor compliance issues. This will also attract foreign investment, as investors seek a transparent and secure financial environment. It will also enhance financial inclusion by integrating broad segments of citizens into the banking system through digital services. This will also improve Iraq’s credit rating, which will positively impact its ability to obtain international financing on better terms.”

He also pointed out that “enhancing confidence in the Iraqi banking system is achieved through the confidence of international banks that will deal with the modernized banking system, which is compatible with international standards, which opens the door for Iraq to deal with correspondent banks in Europe and America. The Iraqi citizen’s confidence in the modernized banks is also increasing, and he begins to feel safe dealing with them, especially with the development of electronic services and the reduction of risks, in addition to the confidence of international companies contracting with Iraq, which are looking for a transparent financial environment that guarantees the integrity of transfers and contracts.”

He pointed out that “the level of progress in the field of banking reform, sponsored by Prime Minister Mohammed Shia al-Sudani within the government’s program and its implementation, and in cooperation with the Central Bank of Iraq, came in accordance with the 2025 Banking Reform Document.”

He stated, “The Central Bank of Iraq is leading a comprehensive shift towards reform, including increasing capital in agreement with the banking system and implementing comprehensive governance.”

He also explained that “the development of modern digital systems is no longer an option, but a necessity. This has already begun in some leading banks, despite ongoing challenges, such as historically weak trust and varying levels of preparedness among banks.” He emphasized that “the reform path is clear and irreversible.”

Burathanews.com

Al-Badri: The government is ignoring the inclusion of the salary scale in the three-year budget.

Representative Ahmed Al-Badri confirmed, on Monday, that the unified salary scale law will not be part of the three-year budget, expressing his surprise at the government’s failure to fulfill its previous pledges to include it in the draft budget.

Al-Badri said in a statement to / Al-Maalouma /, “There is widespread controversy in parliamentary and popular circles about the unified salary scale law in light of ongoing demands for justice for low-income groups,” noting that “Prime Minister Mohammed Shia Al-Sudani had promised to include the law in the three-year budget items, but this has not happened yet.”

He added that “the government has not fulfilled its previous promises despite the importance of the law in addressing the large disparities between state employees,” noting that “postponing the inclusion of the law raises question marks about the government’s intention to achieve job justice.”

Almaalomah.me

Al-Maliki’s coalition: The “entity’s” presence does not prevent Iraq’s participation in the Sharm el-Sheikh summit.

The State of Law Coalition, led by Nouri al-Maliki, sent a letter to Prime Minister Mohammed Shia al-Sudani on Monday regarding his participation in the Sharm el-Sheikh summit.

“The Sharm el-Sheikh conference was called for by Egypt and the United States to arrange the situation in the Middle East, similar to the US president’s initiative to stop the war in the stricken Gaza Strip,” coalition MP Ammar al-Shabli told Shafaq News Agency. He stressed that “it is an international summit, and Iraq is part of the Middle East, and its security is linked to the security of neighboring countries, most of which will be present. The presence of the entity’s president will not affect Iraq’s position.”

Al-Shabli explained that “Iraq has attended many summits with the presence of a representative of the entity, as these are international summits, and Iraq has no choice but to exclude any delegation from them. Therefore, we call on Al-Sudani to condition his participation on preserving Iraq’s sovereignty and security.”

Al-Shabli also stressed the need to “obligate participating countries and delegations to respect Iraq’s sovereignty and security, and to use the summit to pressure Turkey to cease its violation of international law regarding the presence of its forces on Iraqi territory and to respect Iraq’s right to its water share.”

He added, “Al-Sudani must also compel countries that continue to harbor terrorists and their supporters to cease harboring such individuals and hand over those against whom judicial rulings have been issued to the competent Iraqi authorities.”

Iraqi Prime Minister Mohammed Shia al-Sudani departed for Egypt on Monday morning to participate in the Sharm el-Sheikh Peace Summit, convened by the United States and Egypt. The summit will discuss efforts to end the war in Gaza, launch a political process, and enhance the delivery of humanitarian aid. More than 20 world and regional leaders will be in attendance, including the UN Secretary-General and several leaders of major powers.

The Prime Minister’s advisor for foreign affairs, Farhad Alaa Al-Din, confirmed to Shafaq News Agency that Iraq is participating in the Sharm el-Sheikh summit after receiving an official invitation from the United States and Egypt, as it chairs the current session of the Arab Summit and plays an active role in the fateful issues of the Arab nation.

Shiite National Movement leader Muqtada al-Sadr described Prime Minister Mohammed Shia al-Sudani’s participation in the Sharm el-Sheikh summit as a “disgrace,” arguing that it could pave the way for normalization or the signing of the so-called two-state solution. He asserted his innocence of this position.

Shafaq.com

Iraq is in a critical situation as the Mosul Dam approaches its “dead reservoir.”

Water expert and former director of the Mosul Dam, Riyad Ezz El-Din Al-Naimi, warned on Monday of the seriousness of the water situation in Iraq in general, and the Mosul Dam in particular.

According to Al-Naimi, who spoke to Shafaq News Agency, “The water levels in the dam have reached very low levels, approaching ‘dead storage,’ which is unprecedented in more than fifty years.”

He explained that Iraq is experiencing an unprecedented water crisis in over 100 years, due to the lack of rainfall, the scarcity of water imports from Turkey, and the effects of climate change. He noted that the current water reserves in the Mosul Dam do not meet even the minimum needs.

Al-Naimi emphasized that Iraq’s negotiating partner is strong and intelligent, which requires a more assertive negotiating stance from the Iraqi government and the Ministry of Water Resources. He believed that the continued decline in water imports would place the country in a very difficult water crisis, particularly in the Tigris River and the eastern regions.

Iraqi Minister of Water Resources, Aoun Diab Abdullah, revealed on Sunday that Iraq has requested that Turkey increase water flows from the Tigris and Euphrates rivers by one billion cubic meters per second for October and November, at a rate of 500 m³/s for each river, to improve water revenues over the next fifty days.

On Saturday, Iraqi Prime Minister Mohammed Shia al-Sudani revealed an imminent agreement with Türkiye to build dams and address the water crisis, while attacking “false mongers” seeking to achieve partisan gains.

On Friday, October 10, a joint official meeting was held in Ankara between delegations from the Republic of Iraq and the Republic of Turkey to discuss the water issue and enhance bilateral cooperation in this vital field, according to a statement issued by the Iraqi Foreign Ministry.

Shafaq.com

Al-Sudani flirts with Trump and woos Blair: A great friend of the Iraqis

Iraqi Prime Minister Mohammed Shia al-Sudani affirmed his support for US President Donald Trump’s Gaza peace agreement on Monday, while also highlighting Iraq’s rejection of normalization.

Al-Sudani said in an interview with the American network ” CNBC “, translated by Shafaq News Agency, that “the United States confirms, through communication and messages, the strength of relations with Baghdad, which supports the US administration’s efforts for peace in the region, but at the same time, with regard to the possibility of normalization with Israel, it is committed to the laws enacted by the Iraqi Parliament.”

Regarding US President Donald Trump’s plan for a ceasefire in Gaza, he affirmed, “Iraq has declared its support for the agreement reached by President Trump, and we believe he is serious about achieving peace, and that is everyone’s goal.”

He explained that “since the events of October 7, 2023, Iraq’s position has been clear: to stop the war and adopt dialogue as the basis for resolving these disputes and conflicts. However, the Palestinian issue is the core of the problem in the Middle East, and the time has come to find solutions through dialogue and respect for international institutions and treaties.”

Al-Sudani described the US initiative as “important,” expressing his hope that this agreement would be sustainable and the beginning of a radical solution to this problem, ensuring the legitimate rights of the Palestinian people.

Regarding the release of the Israeli hostages, Al-Sudani affirmed his support for “any peaceful solution that leads to an end to this war that has caused the deaths of innocent civilians, not only because of the war, but also because of hunger, thirst, and the lack of basic necessities of life.” He explained, “This scene is painful for everyone. Iraq is one of the countries that has suffered the most from wars, the killing of civilians, and kidnappings, so it is sensitive about all these problems.”

Regarding his view of the Trump administration and his vision for his Middle East diplomacy, he responded, “Iraq and the United States are bound by a strategic partnership. America contributed to changing the dictatorial regime and to our war against ISIS, where we fought and defeated this terrorist organization. We continue to work together to confront these terrorist groups.”

He continued, “We also have a comprehensive Strategic Framework Agreement with Washington, and it is the only agreement of its kind that Iraq has concluded with a country, the United States.”

Al-Sudani continued, “These principles will be taken into consideration by any US president or administration,” noting that “the Trump administration, through the communication that took place and the exchange of messages, emphasizes strengthening this relationship and paving the way for other elements of this agreement, so that the agreement is not limited to the security aspect. It is important that it is open to economic, technological, and cultural aspects, and this is what we are working on through communication channels between the two countries.”

Regarding Al-Sudani’s stance on Tony Blair, who is known for his role in the occupation of Iraq, and the proposal for a future role for him in Gaza, he said, “Blair is a person acceptable to the Iraqis, and a friend, who contributed to going to war at that time and toppling Saddam Hussein’s regime.” He stressed that “he is a great friend of the Iraqis and visits us often, and we hold meetings with him. We certainly wish him success in his mission, and we support him.”

When asked again whether Blair should be involved in a transitional plan for Gaza, he replied: “Everyone has a stake in supporting efforts to deal with the rapid management of this massive destruction in Gaza.”

Regarding Israel’s image in the region and relations with Arab countries, which is one of the main goals of the Trump administration’s foreign policy, and whether Iraq will normalize relations with them, he affirmed, “The government in Iraq is based on a parliamentary system, and it will be based on the laws enacted by Parliament. We have laws that define the relationship with the Israeli entity, in addition to our principled position that the entity has committed numerous crimes against the Palestinian people over the decades. This reality that we are witnessing is painful.”

He continued, “I believe that the Palestinians today deserve a better reality and a better future. The international community supports the Palestinian people, and we support this vision.”

Regarding reaching a peace agreement between Israel and Syria, Al-Sudani pointed out that “Syria is a strong security issue for Iraq, and it also affects the national security of all countries in the region.” He explained that “the diversity existing in Syria is similar to the diversity existing in Iraq, and that any interventions leading to division, which are taking place in Syria, will ultimately affect Iraq and the countries of the region.”

He added, “We believe that Israeli interventions in Syria are incorrect and unacceptable, violate international laws and treaties, and spread instability in a country that everyone wants to overcome this difficult phase.”

The Iraqi Prime Minister concluded by saying, “There is a clear presence of ISIS militants, and they have seized large quantities of weapons from the former Syrian army. This is why they pose a real threat to all countries in the region.” He explained that “weakening the administration in Damascus will allow extremists to take control and threaten the security and stability of this sensitive region.”

Iraqi Prime Minister Mohammed Shia al-Sudani departed for Egypt on Monday morning to participate in the Sharm el-Sheikh Peace Summit, convened by the United States and Egypt. The summit will discuss efforts to end the war in Gaza, launch a political process, and enhance the delivery of humanitarian aid. More than 20 world and regional leaders will be in attendance, including the UN Secretary-General and several leaders of major powers.

The Prime Minister’s advisor for foreign affairs, Farhad Alaa Al-Din, confirmed to Shafaq News Agency that Iraq is participating in the Sharm el-Sheikh summit after receiving an official invitation from the United States and Egypt, as it chairs the current session of the Arab Summit and plays an active role in the fateful issues of the Arab nation.

Shiite National Movement leader Muqtada al-Sadr described Prime Minister Mohammed Shia al-Sudani’s participation in the Sharm el-Sheikh summit as a “disgrace,” arguing that it could pave the way for normalization or the signing of the so-called two-state solution. He asserted his innocence of this position.

Shafaq.com

Without prior announcement or official invitation, Al-Sudani leaves for the Sharm El-Sheikh summit.

The media office of Prime Minister Mohammed Shia al-Sudani announced on Monday that he will travel to Egypt to participate in the Sharm el-Sheikh summit, which Trump will attend, regarding a plan to end the Gaza war and impose peace.

Al-Sudani’s media office said in a statement, “Prime Minister Mohammed Shia al-Sudani is heading to the Arab Republic of Egypt to participate in the Sharm el-Sheikh summit on Gaza.”

This announcement came as a surprise, as Iraq’s participation in the summit had never been announced or disclosed before, nor had Egypt or the United States extended an invitation to Iraq to attend. The summit, which will be attended by the heads of state of more than 20 countries, will be co-chaired by Egyptian President Abdel Fattah el-Sisi and US President Donald Trump.

It is unknown whether Al-Sudani will meet with US President Trump on the sidelines of the summit, with questions still being raised about the nature of the relationship between Iraq and the US and why Al-Sudani has not yet visited Washington and met with the US president.

Burathanews.com