It has been revealed that Iraq’s foreign debts are less than $10 billion, according to Mazhar Salih, the financial advisor to the Iraqi Prime Minister. These debts, originating from the Paris Club agreement settlements before 1990, must be paid off by 2028. The Paris Club had previously cut Iraq’s $120 billion debt by 80% over three years in 2004.
In the 1980s, Iraq borrowed money, weapons, and other supplies to finance the war with Iran, leading to its current debt situation. Despite this, Iraq has paid off all loans taken from the International Monetary Fund since 2003.
Having engaged in multiple financing programs with the IMF, Iraq secured a $5.34 billion financial program in 2016, paying it off within five years. A $6 billion emergency loan was requested in 2021 but not granted. The IMF’s involvement aimed to address economic challenges stemming from oil price drops and balance of payments fluctuations.
It is evident that Iraq is making efforts to manage its foreign debts and stabilize its economy, demonstrating a commitment to financial reform and stability.
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