The Effect of Domestic Public Debt on Bank Credit Directed to the Private Sector  

Iraq Case Study for the Period (2010-2019)

Research submitted to the Board of the College of Management and Economics – University of Karbala، which is part of the requirements for obtaining a higher diploma in financial and banking sciences

Submitted By

Raghad Jassim Mohammed

Supervised by

Assistant Professor Dr.Kamal Kazem Jawad Al-Shammari

Public debt represents an important source of public revenue that the state uses to finance public expenditures in light of the deficit of other revenues، and the public debt is the subject of debate between the two economies. When the pioneers of interventionist thought، led by Keynes، defended the principle of deficit financing، that is، the use of public loans to finance the budget deficit and lack of commitment to the balance of the public budget.

The study aims to diagnose the financial policy in terms of strengths and weaknesses in Iraq، especially public debt management on the one hand، the ability of the banking sector to support and support the government in the face of financial crises that may be exposed to it، the importance of debt and its types، the reasons and justifications for automatic asylum، economic impacts، corruption، waste of money and economic resources and their loss.

The first chapter includes the introduction to the research، the research methodology and previous studies. The second chapter includes the first variable، that is، public debt، its concept، its types، the justifications that lead to the mechanism، the economic effects resulting from it، the causes، and the second variable is understandable، elements، principles، and the risks involved، and the third chapter includes an analysis of the nature of the relationship between internal public debt and credit The banking sector for the private sector in Iraq، where a case study was used in Iraq during the period (2010-2019) and the result came through statistical analysis، that is، the analysis of the correlation between the two variables in Iraq and according to the assumptions imposed that there is a positive relationship between the two variables، i.e. the higher the internal public debt، the higher the credit with the quality of cash and pledge And vice versa، and this is contrary to their nature، as it is known that the relationship between them is an inverse relationship.