CBI: Iraq’s domestic public debt reaches 106T dinars in H1 2026

The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects Baghdad (IraqiNews.com) — Iraq’s domestic public debt surged to 106.072 trillion IQD (approximately $80.97 billion) by the end of June 2026, up from 103.179 trillion IQD at the end of May, according to official financial data published by the Central Bank of Iraq (CBI) on Monday, August 31, 2026. The monthly jump of 2.893 trillion IQD caps a broader upward trajectory over the first half of the year, with total domestic liabilities expanding by 15.557 trillion IQD from 90.515 trillion IQD recorded at year-end 2025. The portfolio of domestic debt instruments reflects a heavy concentration of central bank obligations alongside government securities and commercial borrowing: Ministry of Finance Claims to CBI: Rose to 67.499 trillion IQD by end-June (up from 63.199 trillion IQD in May), representing the largest individual liability component. Direct Loans: Stood at 18.964 trillion IQD. Government Bonds: Reached 10.867 trillion IQD. Treasury Bills (T-Bills): Totaled 8.742 trillion IQD. Domestic Debt Distribution Structure Debt Instrument / ComponentEnd of June 2026 Value (Trillion IQD)Share of Total Domestic DebtCBI Claims on Finance Ministry67.499~63.6%Direct Loans18.964~17.9%Sovereign Bonds10.867~10.2%Treasury Bills8.742~8.2%Total Domestic Debt106.072100% The steady expansion of domestic borrowing is directly tied to an ongoing fiscal gap between sovereign revenues and operational public expenditures: Expenditures vs. Revenues (Through May 2026): State public spending reached 46.697 trillion IQD, compared to public revenues of 33.747 trillion IQD, resulting in a cumulative five-month fiscal deficit of 12.950 trillion IQD. Liquidity Management: To cover operational obligations—predominantly public sector salaries, pensions, and vital subsidies—the Ministry of Finance has increasingly relied on internal debt issuance, discounting treasury bills, and drawing on central bank claims.