Central Bank of Iraq assures depositor protection amid salary delays

The Central Bank of Iraq has issued a statement assuring the public that all depositor funds in licensed banks are protected. The bank clarified that its recent imposition of supervisory or guardianship committees on certain banks is a precautionary regulatory measure to ensure stability and protect rights, rather than an indication of bankruptcy.

The Central Bank noted that the Iraqi banking system maintains sufficient liquidity, with liquid assets to short-term liabilities exceeding 60%. It emphasized that all licensed banks participate in a deposit guarantee company to compensate depositors in the event of a bank's failure.

Simultaneously, Iraq is facing a crisis regarding delayed government salary payments, entering its second month of disruption. This delay, attributed to corruption and administrative planning issues, affects approximately four million public sector employees. The total monthly payroll for these employees is estimated at eight trillion Iraqi dinars, or roughly five billion dollars, creating significant financial pressure on households attempting to meet monthly obligations such as loans, utilities, and private education costs.