# Iraq banking sector, corruption, and fiscal crisis

> Live situation record from CLSTR: https://clstr.news/situations/iraq-banking-sector-and-anti-corruption-measures
> Updated: 2026-09-08T11:49:37.000Z. Sources: 8. Developments: 3.

The Central Bank of Iraq has continued its regulatory efforts to maintain financial stability following the seizure of assets from several politicians in late August. In early September, the bank reaffirmed that all depositor funds in licensed banks remain protected, clarifying that the appointment of supervisory committees on specific institutions is a precautionary measure to ensure stability rather than a sign of bankruptcy. The bank reported that the system maintains sufficient liquidity, with liquid assets to short-term liabilities exceeding 60%.

This regulatory activity occurs alongside a deepening crisis involving delayed government salary payments. Entering its second month of disruption, the delay affects approximately four million public sector employees, with a monthly payroll estimated at eight trillion Iraqi dinars (roughly five billion dollars). This has placed significant financial pressure on households regarding loans, utilities, and education costs.

To address the broader financial crisis and meet operational obligations, Prime Minister Ali Al-Zaidi is developing an economic plan that includes selling state assets, such as approximately 1,000 facilities and palaces formerly belonging to Saddam Hussein. However, economic expert Ziad Al-Hashimi has warned against plans to settle government debts to the Central Bank by transferring ownership of state properties and real estate to the bank. Al-Hashimi argued that such a move merely defers the crisis and risks the depletion of irreplaceable sovereign assets through potential undervaluation or political patronage.

## Timeline

### 2026-09-08: Iraq considers transferring state assets to Central Bank to settle debts

Expert Ziad Al-Hashimi warns that Iraq's plan to settle Central Bank debts by transferring state real estate is a dangerous depletion of sovereign assets that fails to address the underlying financial crisis.

2 sources. https://clstr.news/cluster/iraq-considers-transferring-state-assets-to-central-bank-to-settle-debts

### 2026-09-05: Central Bank of Iraq assures depositor protection amid salary delays

The Central Bank of Iraq has assured depositors that their funds are protected and liquidity is sufficient, amid a growing crisis involving two months of delayed government salary payments.

2 sources. https://clstr.news/cluster/central-bank-of-iraq-assures-depositor-protection-amid-salary-delays

### 2026-08-29: Central Bank of Iraq orders asset seizure of 12 politicians

The Central Bank of Iraq has ordered the seizure of assets and freezing of bank accounts for 12 current and former politicians, including a former Prime Ministerial advisor, amid corruption probes.

4 sources. https://clstr.news/cluster/central-bank-of-iraq-orders-asset-seizure-of-12-politicians

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Cite as: Iraq banking sector, corruption, and fiscal crisis. CLSTR, https://clstr.news/situations/iraq-banking-sector-and-anti-corruption-measures