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Iraq banking sector, corruption, and fiscal crisis
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2026-09-05 15:51 UTC → 2026-09-09 14:04 UTC ·
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Iraq banking sector sector, corruption, and anti-corruption measures fiscal crisis
The Central Bank of Iraq has initiated significant continued its regulatory and anti-corruption actions. In late August, the bank ordered efforts to maintain financial stability following the seizure of assets and the freezing of bank accounts for 12 current and former politicians, including a former Prime Ministerial Advisor, following a legal order from the Central Corruption Fighting Criminal Court. By several politicians in late August. In early September, the Central Bank addressed broader financial stability concerns. It issued assurances bank reaffirmed that all depositor funds in licensed banks remain protected, clarifying that the imposition appointment of supervisory committees on certain banks was specific institutions is a precautionary measure to ensure stability rather than a sign of bankruptcy. This period of financial tension coincides 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 for payments. Entering its second month of disruption, the delay affects approximately four million public sector employees. Attributed to corruption and administrative planning issues, these delays have created employees, with a monthly payroll estimated at eight trillion Iraqi dinars (roughly five billion dollars). This has placed significant financial pressure on households. 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.
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- 2026-09-09 14:04 UTC Iraq banking sector, corruption, and fiscal crisis
- 2026-09-05 15:51 UTC Iraq banking sector and anti-corruption measures
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