A new report from the Kurdistan Region’s Ministry of Finance and Economy shows that nearly 1.9 trillion IQD in government loans and advances remain unpaid after seven years. The report covers the period from 2019 to 2025 and provides a detailed overview of public lending across several sectors.
According to the ministry, the Kurdistan Regional Government (KRG) issued more than 4.077 trillion IQD in loans and financial advances during the seven-year period. These funds supported housing, settlement, agriculture, industry, and tourism projects.
However, borrowers have not yet repaid almost half of the total amount. The report shows that outstanding debt reached 1.918 trillion IQD, representing 47.5% of all loans issued.
Meanwhile, the government approved a 15% debt forgiveness program in 2020 under Council of Ministers Decision No. 1629. After applying the reduction, the recoverable loan balance stood at about 2.1 trillion IQD.
The report also revealed that 227,401 citizens benefited from government loans between 2019 and 2025. Furthermore, 166,500 borrowers fully repaid their debts during the same period.
Housing loans accounted for the largest share of government lending. Authorities issued 196,481 housing loans worth more than 3.24 trillion IQD, representing nearly 80% of all government lending. In addition, housing loans recorded the highest repayment value at more than 1.62 trillion IQD.
Settlement projects ranked second, receiving 578.1 billion IQD in financing. Agriculture followed with 209.8 billion IQD, while industrial projects received 43.6 billion IQD.
Tourism received the smallest amount of government financing. Only 21 tourism loans were issued, with a combined value of 2.2 billion IQD.
Officials said the figures highlight the government’s continued support for economic development. However, they also underline the importance of improving loan collection and repayment rates to strengthen public finances and ensure future lending programs remain sustainable.
