Abstract

This study explores whether the CBI's poor credit management may bankrupt Iraq. This study investigates the causes and consequences of improper loan use. Central bank loans affect the Iraqi economy, and misallocating them has effects. The explanation emphasizes the long-term impact on Iraq's economy and finances. This study investigates how Iraq's central bank loans have harmed its finances and raised its bankruptcy risk. Qualitative and quantitative research methodologies meet the study’s aims. Interviews with banking leaders, government records, and annual reports give information. The analysis suggests that central bank loan mismanagement damaged Iraq's economy. Bribery, incompetence, and a lack of internal controls caused poor management. This mishandling led to Iraq's bankruptcy, growth in the national debt, and investor distrust. The research suggests ways to fix problems and lower financial risk. Proposals include strengthening banking regulation, loan distribution transparency, and governance. These measures will boost Iraq's economy and banking. This analysis concluded that managing the Central Bank of Iraq’s loans to the Iraqi government is critical. Reallocate these obligations to avoid bankruptcy and enhance Iraq's economy. Bankruptcy hurts both goals.