Iraq's Domestic Debt Reaches $81 Billion at End of June, Up 17.2 Percent Since Year Start

Iraq's domestic public debt reached 106.072 trillion dinars (about $81 billion) at the end of June 2026, up 2.8 percent (2.893 trillion dinars, about $2.21 billion) from May, according to Central Bank of Iraq (CBI) data reported by Shafaq News on Monday, 9 Shahrivar 1405 (August 31, 2026). The debt has risen 17.2 percent (15.557 trillion dinars, about $11.9 billion) since the end of 2025, when it stood at 90.515 trillion dinars (about $69.1 billion). The largest share is the Finance Ministry's liabilities to the central bank, which rose to 67.499 trillion dinars ($51.5 billion) in June from 63.199 trillion dinars ($48.2 billion) in May. Treasury bills accounted for 8.742 trillion dinars ($6.67 billion), loans for 18.964 trillion dinars ($14.5 billion) and bonds for 10.867 trillion dinars ($8.30 billion).

Shafaq News reported that the increase comes as Iraqi government spending continues to outpace revenue: through May, public expenditure reached 46.697 trillion dinars ($35.6 billion) against revenue of 33.747 trillion dinars ($25.8 billion), a gap of about 12.95 trillion dinars ($9.9 billion). The government's growing reliance on borrowing from the central bank indirectly bears on the bank's capacity to supply dollars through its daily currency auction, one of the main sources of hard currency for Iranian traders active in Iraq's trade corridor.