World Bank: Middle Eastern Countries' Debt is Growing

(Patria) - The World Bank released its latest annual report on external debt at the end of the year last week, assessing that the debt of some countries has significantly increased last year, writes Al-Monitor.

Al-Monitor summarized the debt situation in Middle Eastern countries at the end of 2022 in a few sentences, based on the World Bank's report. External debt refers to the portion of a country's debt borrowed from foreign lenders.

Egypt: Egypt's external debt amounted to $143.3 billion, up from $129.8 billion in 2020. Egypt has spent most of its borrowed money on infrastructure. Some analysts believe Egypt has strong potential to repay its debt, Al-Monitor reported last year.

Iran: Iran's external debt stood at $10.4 billion. This is almost double the $5.4 billion in 2020. Iran's Financial Tribune reported on Sunday that Iran's external debt is decreasing again, citing data from the Central Bank. The newspaper stated that US sanctions are a major obstacle to foreign investment in Iran, along with "clumsy laws and economic instability".

Iraq: Iraq's external debt was $25.3 billion at the end of 2021. In 2020, it was $26.3 billion, indicating a decrease. Iraq finally got a new government in October. One of the government's first moves was to sign a $4 billion credit agreement with Iran.

Jordan: Jordan's debt was $41.8 billion, up from $38 billion in 2020. In addition to foreign loans, Jordan regularly receives economic assistance from its wealthy Gulf neighbors to finance its budget. One piece of positive news about the Jordanian economy is that tourism revenues are increasing.

Lebanon: Lebanon's debt was $66.9 billion, down from $68.9 billion in 2020. Lebanon is in the midst of a devastating economic crisis. Despite a slight decrease in debt, many are hesitant to lend money to Lebanon until reforms in governance and the fight against corruption are implemented.

Syria: Syria's external debt was $5 billion at the end of 2021, compared to $4.8 billion in 2020. The Syrian economy is in ruins due to the ongoing civil war. Some observers have also pointed out in recent years that US and European sanctions harm civilians in the country.

Turkey: Turkey's external debt was $435.5 billion, a decrease from $441.2 billion in 2020. In June, the New York-based credit rating agency S&P Global reported that Turkey is vulnerable to a liquidity crisis due to high debt and economic problems. The problem is particularly high inflation in Turkey.

Yemen: War-torn Yemen's debt was $7.6 billion, up from $7.1 billion in 2020. The World Bank did not include information from several regional countries, such as Israel and the Gulf states, in the report, Al-Monitor concludes.