Baghdad, October 19 (QNA) - The Central Bank of Iraq announced on Sunday that the country’s external debt does not exceed USD 13 billion, confirming that the actual deficit for 2023, 2024, and 2025 has been significantly lower than projected.

In a statement, the bank explained that the deficit during these years amounted to about 35 trillion Iraqi dinars, which was covered domestically through the issuance of financial bonds and treasury bills. It noted that actual borrowing represented only 18.2 percent of the deficit outlined in the budget.

Regarding external debts due for repayment, the bank stated that they do not exceed USD13 billion, after excluding suspended and unclaimed debts of the former regime, emphasizing that Iraq has not defaulted on any of its obligations.

The bank also pointed out that the domestic debt, totaling 91 trillion dinars, includes 56 trillion accumulated up to the end of 2022, with an additional 35 trillion added over the past three years. It clarified that most of the domestic debt lies within the state banking system.

According to the statement, the ratio of public debt to GDP has not exceeded 43 percent - a level considered moderate and within safe limits by international standards, and one that does not pose a burden on the Iraqi economy.

The Central Bank affirmed that it is working to establish a comprehensive financial vision to support the government’s efforts toward broad economic reform and diversification of revenue sources beyond oil dependency, to strengthen financial sustainability and avoid future budget deficits. (QNA)