Iraq cuts foreign debt to nearly $55B in 2024

Shafaq News/ Iraq lowered its foreign debt to $54.6 billion in 2024, marking a 2.94% decline from the previous year, according to Central Bank data released on Saturday.

By contrast, domestic debt rose to $59 billion by the end of June, up from $56.2 billion in 2023.

The decline in external liabilities follows improved repayment capacity, supported by higher oil revenues. As OPEC’s second-largest crude producer, Iraq depends on oil exports for more than 90% of its government income.

Meanwhile, the rise in domestic debt is a result of continued budget pressures, with authorities turning to internal financing tools to fund public expenditures.

Analysts warn that while this shift may ease immediate fiscal strains, it could tighten liquidity and limit monetary flexibility, and structural reforms “remain critical” to curbing Iraq’s reliance on hydrocarbons and strengthening long-term fiscal stability.