Iraqi government denies 16 trillion dinar foreign loan reports to cover deficit

The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects Baghdad (IraqiNews.com) – The Iraqi federal government denied reports on Friday, October 30, 2026, alleging that Baghdad intends to borrow 16 trillion Iraqi dinars from Saudi Arabia, Kuwait, China, Germany, and France to plug the sovereign budget deficit, confirming that state fiscal strategy relies on deploying domestic revenues to sustain public expenditures. In statements delivered to the Iraqi News Agency (INA), Government Spokesperson Haider Al-Aboudi stated that widely circulated claims regarding foreign borrowing arrangements to offset budget shortfalls are entirely unfounded. Al-Aboudi affirmed that there is no fiscal necessity for external borrowing, citing sustained crude export performance and favorable revenue flow. Al-Aboudi explained that the executive administration adheres to a disciplined economic policy centered on optimizing state revenues to fund public commitments and sovereign operational requirements. He noted that elevated crude export ceilings have bolstered treasury inflows, enabling the government to maximize available financial resources and fulfill state obligations without turning to foreign debt.