Central Bank: The Use Of International Cards Continues Inside And Outside Iraq Without Change.
Baghdad Today – Baghdad The Central Bank of Iraq issued a clarification today, Friday (July 4, 2025), regarding the use of international cards, confirming their continued use inside and outside Iraq without change.
The bank stated in a statement received by Baghdad Today that “the National Electronic Payment Card Project is an additional local option used exclusively within Iraq and in Iraqi dinars. It does not cancel or restrict existing international cards such as Visa and Mastercard.”
The statement added, “There are no plans to cancel these cards or ban dollar transactions outside Iraq.
Holders can still use them inside and outside the country as is currently the case.”
According to the statement, the bank indicated that “this project aims to
reduce payment costs,
enhance financial inclusion,
diversify options for the public, and
provide national cards for all institutions and segments within Iraq,
” indicating that “international cards remain the primary means of spending in dollars or other currencies outside Iraq and for purchases via global websites.” https://baghdadtoday.news/277873-.html
Iraq’s Decline In Public Debt… Does It Signal An Economic Renaissance?
Close up breaking 2025-07-04 Shafaq News – Baghdad The Iraqi government has begun taking steps to reduce its internal debt.
The domestic budget is 85 trillion dinars, and the external budget is 54 billion dollars, through a plan that depends on a combination of Rationalization, repayment, structuring and revenue expansion, with particular focus on Only productive borrowing instead of inefficient borrowing.
As a result of this strategy, the bank’s statistics showed that The Central Bank of Iraq announced, yesterday, Thursday, a decrease in domestic public debt at the end of the month. April of this year to reach 85 trillion and 503 billion Iraqi dinars, down For the month of March, which amounted to 85 trillion and 536 billion dinars.
The official statistics that I reviewed indicated that Shafaq News Agency reported that “the decline came as a result of repaying loans from financial institutions.”
To reach 19 trillion and 119 billion dollars after it was 19 trillion and 152 billion dollar”.
She explained that “the remaining debts are owed by… The Ministry of Finance owes 756 billion dinars, and treasury transfer debts to the Central Bank.
Commercial banks amounting to 51 trillion and 30 billion dinars, in addition to treasury transfers. On account of the Ministry of Finance in the amount of two trillion and 30 billion dinars, and national term debts Farmers’ dues amount to 12 trillion and 568 billion dollars.
As for external debt, official statistics revealed that The Central Bank of Iraq stated on June 14, as seen by Shafaq News Agency, that: Iraq’s debt in 2024 amounted to $54.6 billion.
A decrease of 2.94% compared to 2023, in which debt amounted to 56 billion and 207 Millions of dollars.
Financial and economic experts explain that:
External debts due over the next four years are about 9 billion. Dollar, and there are external debts of a similar amount extending over longer years related to long-term loans from International funds for the reconstruction of mostly liberated areas.
Experts confirmed that the ratio of external debt to GDP is in the safe range of no more than 8% of GDP Total, which places Iraq within the comfortable and low-risk global credit rating.
Experts point out that Iraq has resources.
Diversified investments can lead to eliminating these debts, which contributes to maximizing confidence. In the national economy and improving the international investment environment for the Iraqi economy.
Experts explain that the lower the interest burden, the better. Internal and external debts decreased as investors were reassured that Iraq was able to… Covering investment costs, and providing appropriate returns on those investments will lead to…
There is a need to diversify the national economy, especially since there is a need for a thousand strategic projects. In the food, energy, transportation and other sectors.
“Financial reinforcement“
In detail, the Prime Minister’s Advisor for Affairs says: Finance, Mazhar Muhammad Salih, said, “The syndrome of low public debt growth rates or Government with the decline in growth in the annual budget deficit is a trend that constitutes one of The components of the success and strength of the country’s financial policy are called “financial consolidation.”
“It is an essential goal of the program. Government, and undoubtedly indicates a shift towards another essential interdependence, which is the cohesion of financial sustainability. “With sustainable development,” Saleh said. He added to Shafak News Agency, “This renaissance in Managing public financial resources will undoubtedly lead to diversification of the national economy.
And moving the joints of growth in more than one economic sector guarantees the well-being of Iraqi society and its future.
Development in it.
Based on the above, Saleh explains that, “the more Debt decreased, dependence on creditors from all sources, especially external debt, decreased,
Which leads to increased government flexibility in formulating monetary and fiscal policies away from Conditions of countries and foreign institutions donating debts.
He continues, “In addition to enhancing confidence in The national economy is an attractive point and a better business climate for investors due to the low risks. economy, while at the same time improving the country’s credit rating.”
As for the domestic public debt, it is according to Saleh “leads to easing the pressure on bank financing so that banks can devote themselves to granting Loans to the private sector, as well as reduced competition between the government and the market over the price “Benefit”. He explains,
“Bank interest rates often rise.” Available to the private sector with rising local sovereign debt due to the pressure factor on Liquidity and bank credit, which is called (displacement – a phenomenon that occurs when Government spending through debt or large public borrowing to reduce or (displace) “Private investment or spending in the economy.”
Saleh confirms that “the decrease in what the government allocates… From its budget for interest and installment payments,
it will undoubtedly free up additional resources for infrastructure spending. Infrastructure, education, health, etc., in programs that maintain disciplined spending (non- (Austerity) and is consistent with the principles of financial governance in the government programme and development plan. National 2024-2028.
Debt reduction measures
Among the debt reduction measures and their implications, the expert says: Financial and economic, Safwan Qusay, said:
“Zeroing domestic debt requires taking The Ministry of Finance has taken steps to facilitate the smooth settlement of this bill to creditors.
From this, Qusay explains to Shafaq News Agency, “From During the transfer of ownership of a portion of state real estate, by issuing real estate shares for those assets and transferring Ownership of these shares goes to the creditors, to eliminate debts and not burden the budget.
“Federal cumulative benefits.”
He stresses that “this solution can contribute to Increase the financial flexibility of the Ministry of Finance later in covering the deficit through borrowing.
“Internal”
As for external debts, according to Qusay, Limited, long-term, with reduced interest, and the process of zeroing them out is done by setting a group One of the alternatives for the Ministry of Finance to expedite its payment, which contributes to improving the environmental outlook. International investment in the Iraqi economy.
He explains, “The lower the interest burden and the more the Internal and external debts, the more investors are reassured that Iraq is able to cover Investment costs and providing appropriate returns on those investments.
Qusay reassures that “external debts are not…” Worried or dangerous, it is not high, as global indicators allow for internal borrowing And external to reach 60 percent of the GDP, and yet it should not be burdened Future generations will suffer from such debts, especially since Iraq has diverse resources that can Investing it in a way that leads to eliminating these debts.”
Benefits hindered by corruption
In turn, the economic expert, Karim Al-Helou, notes that: “Most countries in the world are in debt, internally or externally, whether from international banks or “IMF and the like.”
Al-Halou explained to Shafaq News Agency, “The highest The world’s largest debt is the American debt, as the US government’s domestic debt exceeds 36 A trillion dollars, and this is a weak point, and Germany also has two trillion euros in debt internally, but “Domestic debt remains much less harmful than external debt.” He explains that the internal debt is in the currency.”
Local, so the money can be circulated and the problem can be solved,but the external debt has profits,
It may be exploited politically against countries that borrow.
On the importance of debt repayment and its impact on the economy Especially in Iraq, Al-Halou confirms,
“Paying off internal or external debts can…
Then transfer these installments to investment in the infrastructure and projects that it needs.
Iraq at the present time, especially since there is a need for a thousand strategic projects in the sectors
Food,
energy,
transportation, etc.
He points out that “the decline in domestic debt or External control in Iraq means that the state and its institutions have begun to control many things, but The road remains long in light of the corruption that hinders many projects in terms of
corruption.
Administrative corruption,
bribery,
favouritism,
red tape and
institutional ignorance.
This impression is reinforced by what Al-Halou says in: He concluded his speech by saying,
“I note that hundreds of good decisions have been issued by the Iraqi Council of Ministers, but…
When it comes to implementation in the provinces,
it is obstructed by corrupt parties exploiting the positions they hold.
It is acquired, and therefore most tenders and investment projects are not delivered except With bribery, this is a major flaw and a cancer eating away at the country’s body. https://shafaq.com/ar/تقارير-وتحليلات/تراجع-الدين-العام-العراقي-هل-يشير-لنهضة-اقتصادية
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