Iraq’s internal public debt went down a little in October 2025 compared to September, but it is still much higher than it was a year ago. This information comes straight from new numbers released by the Central Bank of Iraq.
By the end of October, Iraq’s internal debt stood at about 88.5 trillion Iraqi dinars, which is around $61 billion. That’s a small drop from September, when the debt was 90.6 trillion dinars, or about $62.5 billion. The main reason for this drop was simple: the government borrowed less money from state-owned banks.
Loans from government banks fell noticeably. In September, those loans were around 7 trillion dinars, but by October they dropped to about 5.6 trillion dinars. That cut alone helped push the total debt slightly lower.
Most of the other debt numbers did not change at all. Money owed to the Ministry of Finance stayed at about 556 billion dinars. Treasury transfers held by the central bank remained at 50.4 trillion dinars. Treasury bills held by the Ministry of Finance stayed at 1.5 trillion dinars. Loans from financial institutions were unchanged at 14.3 trillion dinars, and government bonds remained steady at about 14.1 trillion dinars.
So yes, there was a small monthly drop. But when you zoom out, the bigger picture tells a different story.
Compared to the end of 2024, Iraq’s internal debt is still more than 6% higher. Back then, it stood at around 83 trillion dinars. And when you compare it to 2023, the increase is even clearer. Debt has jumped by about 25% since that time, when it was roughly 70.5 trillion dinars.
In short, Iraq managed to ease its internal debt just a bit in October by borrowing less from state banks. But overall, the country is still carrying much more internal debt than it did one or two years ago.
