Iraq has sustained a strong “B” credit score score — a speculative grade that signals slight financial threat — for ten consecutive years while cutting its overseas debt to just $9 billion, prime Minister Mohammed Shia al-Sudani’s monetary adviser Mazhar Muhammad Saleh stated on Monday.
Saleh advised Shafaq news that remaining duties consist of residual arrears from the 2004 Paris club agreement, an international deal that restructured maximum of Iraq’s debt after the fall of Baath regime in 2003, in addition to numerous business money owed scheduled for clearance by 2028, and loans from development price range for liberated areas, which might be expected to be completely repaid in the next decade.
outside debt currently stands at best 7–8 percentage of gross domestic product (GDP), whilst general public debt — domestic and overseas blended — is among 35 and 40 percent of GDP, Saleh said, noting that both figures stay far below the global secure ceiling of 60 percent.
in keeping with Saleh, fluctuations in oil costs considering 2014 pressured Iraq to rely upon home borrowing, which has now reached around ninety two trillion dinars (approximately $64.7B), 1/2 of that quantity is held inside the relevant financial institution of Iraq’s investment portfolio. Saleh careworn that these money owed are completely covered via liquidity and foreign reserves that exceed 100 percentage.
