Iraq plans 10 trillion‑dinar loan to fund 2026 public‑sector salaries
The Iraqi government is moving toward a new borrowing law that would raise 10 trillion dinars to cover public‑sector salaries for the latter part of 2026. A monthly deficit of roughly 4.5 trillion dinars has emerged as oil revenues have slumped, leaving the state needing about 7.5‑8 trillion dinars each month to meet payroll.
Oil‑related income fell sharply from around $6.9 billion to about $1.3 billion per month, prompting the finance ministry to rely on both domestic and external sources. The proposed financing mix calls for roughly 65 % domestic borrowing and 35 % external funding, while the Central Bank of Iraq must limit the use of its reserves to preserve the current exchange rate.
Analysts warn that the 2026 fiscal strain will force the government into a “forced financial discipline” phase, restricting spending mainly to salaries and essential services.
Entities: Abdul Hussein Al‑Mousawi · Ali al‑Zaydi · Central Bank of Iraq · Falah Al‑Sari · Haider Al‑Aboudi · Iraq · Iraqi government · Iraqi oil sector
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The Iraqi government is considering a new borrowing law of 10 trillion dinars to fund public‑sector salaries for late 2026. (Iraqi government)
- [○ 1 SOURCE] The Central Bank of Iraq must limit reserve use to maintain the exchange rate. (central bank policy)
- [○ 1 SOURCE] The financing plan proposes 65 % domestic borrowing and 35 % external funding. (government plan)
- [○ 1 SOURCE] Iraq needs 7.5–8 trillion dinars each month to fund salaries. (financial estimates)
- [○ 1 SOURCE] The monthly salary financing gap is about 4.5 trillion dinars. (financial estimates)
- [○ 1 SOURCE] The 2026 fiscal strain will force spending to focus on salaries and essential services. (analyst outlook)
- [○ 1 SOURCE] Oil revenue fell from about $6.9 billion to about $1.3 billion per month. (oil revenue data)