Monday Iraq News Posted by Tishwash at TNT 10-19-2026
TNT:
Tishwash: Finance Ministry and World Bank discuss banking sector reform and enhancing financial management efficiency in Iraq
The Undersecretary of the Ministry of Finance, Abdul Hassan Jamal, discussed with a delegation from the World Bank ways to enhance cooperation in financial policies and develop the financial and banking sectors in Iraq.
The ministry stated in a statement followed by “Iraq Observer” issued on Sunday, October 18, 2026, that the meeting witnessed a discussion of the next steps to expand the dialogue on financial reform and the development of the banking sector, in a way that contributes to raising the efficiency of financial management in the country.
For its part, the World Bank delegation, which included Andrej Popovic and Cedric Musset, expressed its readiness to continue supporting financial projects and contributing to advancing the economic development process in Iraq. link
Tishwash: Al-Fatlawi speaks about steps to raise the value of the Iraqi dinar.
MP Shaima al-Fatlawi stressed on Sunday the necessity of adopting an economic and monetary policy aimed at protecting the Iraqi dinar and restoring its purchasing power, noting that the decline in the value of the local currency over the past years has negatively impacted the living conditions of citizens.
Speaking to Al-Maalouma, al-Fatlawi said, "The government should have worked to preserve and strengthen the value of the Iraqi dinar, as other countries have done to maintain the stability of their currencies, instead of resorting to measures that lead to its periodic devaluation."
She added, "Monetary policy should focus on restoring the dinar's purchasing power and achieving a more stable value," pointing out that "the experience of some countries in maintaining currency value serves as an example of the differences in monetary policies between countries, while taking into account the specific characteristics and capabilities of the Iraqi economy."
Al-Fatlawi explained that "the state's responsibility lies in protecting the local currency and limiting its devaluation," emphasizing that any "economic measures must consider their impact on citizens, markets, and living standards."
She pointed to "the importance of reducing reliance on the dollar and strengthening the role of the dinar in domestic transactions, along with adopting policies that support exchange rate stability and bolster confidence in the national currency," explaining that "achieving this requires integrated economic and monetary measures that enhance local production and support financial stability."
She stressed that "restoring the dinar's strength is not achieved simply by demanding an increase in its value, but rather requires a well-considered monetary policy and a productive economy that reduces dependence on imports, thereby contributing to protecting citizens' purchasing power and strengthening the country's economic independence." link
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Tishwash: Iraq opens its first satellite ground station to enhance "digital sovereignty"
On Sunday evening, Iraqi Minister of Communications Mustafa Sanad inaugurated the first Iraqi ground station for satellite communications in the capital, Baghdad, in a move he said comes within the framework of strengthening digital sovereignty and developing the communications infrastructure in the country.
During a speech he delivered at the station's opening, in the presence of a Shafaq News Agency correspondent, Sand said that the ministry is launching today the first ground station dedicated to digital sovereignty, considering its opening a step towards achieving national sovereignty in the communications sector.
He added that the project is old, but the work on it led to its completion and operation, noting that Iraq's ownership of a satellite cannot be achieved without a ground station.
Sand added that the ministry has begun implementing its vision in agreement with the official and concerned authorities, noting that there are about 1,400 stalled projects, which he said can be completed once the complications that hinder their implementation are removed.
In another context, the minister announced his intention to change the logo of the Ministry of Communications, explaining that its official adoption will be after obtaining the approval of the General Secretariat of the Council of Ministers.
For his part, Wael Al-Khalidi, Deputy CEO of the Commerce Group of Companies, said during the conference that the opening of the station represents the launch of a strategic project aimed at enhancing digital sovereignty, based on the development of infrastructure in Baghdad.
He added that the company had carried out similar work in Germany, explaining that the project in Iraq would combine an internet exchange point, a data center, and satellite communication outlets.
He pointed out that Iraq’s geographical location gives it an advantage in connecting regional and international networks between Asia, Africa and Europe, explaining that the station will contribute to providing high-speed internet and satellite broadcasting services, transmitting live broadcasts of channels, and integrating satellite communications with terrestrial networks.
He stressed that the project would provide opportunities for individuals and support economic growth, as well as generate financial returns for Iraq through expanding coverage and providing services, supporting digital education, providing alternative communication channels, and promoting data sovereignty.
The Minister of Communications had announced last Thursday that the station would be inaugurated on Sunday, explaining that it is dedicated to dealing with satellites located in geostationary orbit (GEO).
Sand also called on security and service institutions, government ministries and private sector companies to adopt the station as a main gateway for receiving and transmitting traffic, instead of relying on international infrastructure outside the scope of national sovereignty, in preparation for moving to the next stage of the Iraqi space sovereignty project. link
Tishwash: What conditions might the International Monetary Fund impose on Iraq?
Economic expert Nabil Al-Marsoumi revealed that Iraq has submitted a request to obtain a financing program from the International Monetary Fund, with the aim of covering the large actual deficit in the general budget, in light of the rise of internal debt to more than 109 trillion dinars, and the decline of the foreign reserves of the Central Bank of Iraq to $75.6 billion.
Al-Marsoumi stated in a Facebook post that “the Director of the International Monetary Fund, Kristalina Georgieva, said that Iraq has applied for a financing program from the international institution to cover the large actual deficit in the general budget, in light of the rise in internal debt to more than 109 trillion dinars, and the decline in the foreign reserves of the Central Bank of Iraq to $75.6 billion.”
He added that "Iraq is classified as a middle-income country, with outstanding external debts of about $13 billion, after excluding debts from the previous regime that are outstanding and unclaimed, while the total recorded external debt, with all its historical details, amounts to about $54 billion."
He added that “Iraq could obtain a credit tranche of $5.4 billion from the Fund, noting that the Fund lends to its members at a low interest rate of no more than 1.25%, while the markets lend to Iraq at more than 10%, due to Iraq’s credit rating. However, the Fund will ask Baghdad to implement strict measures to reduce the wage bill, regulate the ration card, activate the collection of electricity fees, and diversify the resources of the non-oil sector.”
Al-Marsoumi concluded by saying that "the first document that the government will sign with the Fund, before starting to prepare for lending, is the Prime Minister's signing of the Economic Policy Reform Document, in preparation for the Fund's discussion of policies related to budget preparation, debt, exchange rate, expenditures, employment, and others." link
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Tishwash: Al-Mada reveals Iraqi moves to borrow $5.4 billion from the IMF
The Independent Press Agency reported that the Iraqi newspaper Al-Mada revealed preliminary negotiations between Iraq and the International Monetary Fund to obtain external financing that could reach $5.4 billion, amid increasing financial pressures and a widening budget deficit, amid economic warnings about the potential impact of loans on government spending and citizens' purchasing power.
The newspaper stated that these developments bring back to the forefront questions about the effectiveness of the economic measures taken by the government, especially the adjustment of the dollar exchange rate against the dinar, after Prime Minister Ali Faleh al-Zaidi confirmed in previous statements that this measure aims to avoid external borrowing and reduce the accumulation of debt.
According to the report, the Iraqi government has not yet announced details of the potential loan program, its value, or its conditions, despite the IMF Managing Director Kristalina Georgieva announcing the Fund’s readiness to provide financial support and economic advice to Iraq upon request for a financing program.
On Saturday, October 17, 2026, during the annual meetings of the International Monetary Fund and the World Bank in Bangkok, Georgieva announced that the international institution intends to strongly support Iraq through financing and assistance with economic policies, without announcing the amount of the loan or the date of concluding a final agreement.
Al-Mada quoted the Prime Minister’s financial advisor, Mazhar Muhammad Saleh, as confirming that the praise of international financial institutions for the Iraqi reforms represents a positive indicator of the course of economic policies, but he stressed that the success of the reforms should be measured by their ability to achieve tangible results, including improving the management of public finances, reducing dependence on oil, and enhancing non-oil revenues.
Saleh explained that developing the tax and customs systems, rationalizing public spending, and enhancing transparency and digital transformation are necessary steps to address financial imbalances, noting the importance of developing the banking sector, creating an investment environment, and revitalizing productive sectors.
The financial advisor, according to the newspaper, did not confirm proceeding with a specific loan agreement, nor did he deny the existence of talks with the International Monetary Fund, merely emphasizing the importance of continuing technical and institutional cooperation with the Fund.
In contrast, economist Nabil Al-Marsoumi revealed in a statement to Al-Mada newspaper that Iraq is conducting preliminary negotiations to obtain a financing tranche estimated at about $5.4 billion, noting that the need for external financing is increasing with the widening of the expected deficit in the 2027 budget.
Al-Marsoumi pointed out that the expected deficit could reach about 43 trillion dinars, given the high expenditures and limited local funding sources, in addition to the pressures facing foreign reserves.
He warned that reaching an agreement with the International Monetary Fund might require a commitment to a package of financial and economic reforms, likely including controlling expenditures, adjusting government support mechanisms, and activating electricity fee collection, as well as other measures that could affect public spending.
According to the report, these conditions remain expectations put forward by economic specialists, and are not official conditions announced by the International Monetary Fund regarding Iraq.
For his part, economic and financial researcher Jalil Al-Lami warned in an interview with the newspaper that the increasing reliance on foreign loans could lead to a rise in the size of the public debt and the costs of servicing it, especially if the funds are used to finance current expenditures instead of addressing structural imbalances in the economy.
Al-Lami explained that obtaining a hypothetical loan of $10 billion with an annual interest rate of 5% means bearing interest of up to $500 million annually, without taking into account the principal installments and other fees.
He stressed that these figures represent a mathematical example to illustrate the risks of borrowing, and are not the value or benefit of a financing program that has already been agreed upon.
The report addressed the implications of adjusting the dollar exchange rate, as Al-Lami pointed out that raising the official rate from 1300 to 1500 dinars, according to the example he presented, gives the government additional revenues valued in dinars when converting dollar oil revenues, but it does not represent a real increase in the oil revenues themselves.
He added that such measures may contribute to easing the pressure on the budget in terms of accounting, but they may, on the other hand, lead to an increase in the costs of imported goods and affect the purchasing power of citizens.
He stressed that addressing the fiscal deficit sustainably requires diversifying income sources, improving tax and customs revenues, reforming the banking sector, and developing industry, agriculture, and investment, instead of relying on borrowing as a permanent solution.
These developments raise economic questions about the Iraqi government's ability to balance financing its financial obligations with maintaining necessary spending levels, particularly salaries, public services, and social protection programs.
A question also arises regarding the nature of the funding required from the International Monetary Fund, and whether it will be allocated to support financial and monetary stability, or to address a broader funding gap within an agreed economic reform program.
Observers believe that the main challenge lies not in obtaining the loan alone, but in the government’s ability to turn any external financing into an opportunity to reform public finances and enhance sustainable revenues, without imposing additional economic burdens on citizens.
In the absence of a final agreement or official financing terms, the external borrowing file remains open to multiple possibilities, while the need for government clarification regarding the size of expected financial commitments, loan repayment mechanisms, and the nature of reforms that may accompany any new program with the International Monetary Fund is increasing.
This issue brings back to the forefront the most prominent question raised by Al-Mada: If the adjustment of the dollar exchange rate was aimed at avoiding external borrowing, what is driving Iraq today to seek new international financing, and what is the cost of that to the economy and the citizen link