Iraq domestic public debt surges 21% to 109.5 trillion dinars by July 2026

The headquarters of the Central Bank of Iraq. Photo: CBI Baghdad (IraqiNews.com) – Iraq’s total domestic public debt rose to approximately 109.5 trillion Iraqi dinars by the end of July 2026, marking a 21 percent expansion since the close of 2025, according to official statistical disclosures released by the Central Bank of Iraq. Figures published indicate that internal sovereign debt increased by roughly 19 trillion dinars over the first seven months of the year, up from 90.5 trillion dinars recorded at year-end 2025. This internal borrowing trajectory accelerated steadily across the summer months, climbing from 103.2 trillion dinars at the end of May to 106.1 trillion dinars in June, before reaching 109.5 trillion dinars at the close of July. The sovereign debt portfolio remains heavily concentrated within central bank liabilities and short-to-medium-term credit instruments. Claims held by the Ministry of Finance in favor of the Central Bank of Iraq represent the single largest share of the domestic obligation, standing at 72.5 trillion dinars, or over 66 percent of the total figure. Direct commercial and state bank loans constitute the second-largest portion at 18.95 trillion dinars, representing more than 17 percent. Government bonds account for 9.33 trillion dinars, or roughly 8.5 percent, while short-term treasury bills issued to satisfy immediate fiscal liquidity requirements comprise 8.74 trillion dinars, or approximately 8 percent of total internal commitments. The sharp rise in domestic debt underscores Baghdad’s intensifying reliance on internal deficit financing to sustain state operational outlays amid constrained liquidity and persistent pressure on sovereign revenue channels.