In its latest analytical report, the Alforat Center for Strategic Studies examined the rising level of Iraq’s domestic debt and the government’s growing reliance on the Central Bank and the banking system to finance its ongoing expenditures.

Warning of increasing pressure on monetary stability, liquidity, and bank lending, the report stressed that continuing this approach poses serious risks to the national economy. The center’s analysts examined the risks associated with exchanging debt for government assets and proposed measures including rationalizing public spending, strengthening non-oil revenues, reforming the banking sector, and working to restore confidence in the country’s financial system.