Former member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, warned against relying on external borrowing if the current regional crisis continues, saying such a move could negatively affect Iraq’s economy and local currency.
Al-Saadawi said the government is continuing efforts to secure enough liquidity and confirmed that salaries for employees and other entitled groups will continue to be paid despite the ongoing regional tensions.
He explained that the worsening regional conflict and the continuing crisis around the Strait of Hormuz could push the government toward difficult financial decisions. However, he warned that excessive dependence on foreign loans would place a heavy burden on Iraq.
According to Al-Saadawi, international financial institutions such as the International Monetary Fund and the World Bank had already warned Iraq after 2014 about the dangers of relying too heavily on external borrowing.
He said those warnings indicated that excessive foreign debt could eventually weaken and destabilize Iraq’s economy if not managed carefully. Iraqi economy.
