Finance Minister orders Rafidain Bank to resume lending
Shafaq News- Baghdad
Iraq’s Finance Minister Falih Al-Sari on Monday instructed state-owned Rafidain Bank to resume lending to public-sector employees, streamline loan applications, and expand financing for private businesses.
During a visit to the bank, Al-Sari met Director General Ali Karim and other officials to review operations and services, calling for faster loan processing and fewer administrative requirements. Bank management also presented plans to automate procedures and upgrade digital systems.
The minister pressed for easier access to credit for private companies, particularly those undertaking production and investment projects, alongside improvements to the bank’s technical infrastructure and customer services.
He also inaugurated a branch at Rafidain’s headquarters dedicated to business clients, offering specialized services and faster transactions.
The directive comes after months of lending restrictions at state-owned banks. By September, most had suspended loans and salary advances because of liquidity shortages, while Central Bank data showed deposits falling 5.6% and cash credit contracting 5.4% in the first half of 2026.
An informed source previously linked the lending freeze at Rafidain and Rasheed banks to declining liquidity, poor credit planning, and delays in technological modernization. Both institutions have also faced regulatory scrutiny over their lending practices, investment financing, and liquidity management.
Read more: Iraq’s private banks: Capital Growth and the structural credit gap
