An economist expects the capital increase period for Iraqi banks “covered by reform” to be extended.
An economist expects the capital increase period for Iraqi banks “covered by reform” to be extended.
2025-08-18 09:29
Shafaq News – Baghdad
Economic expert Mustafa Akram Hantoush confirmed on Monday that the Central Bank of Iraq and the Iraqi banking system are going through a critical phase, suggesting that the deadline for increasing the capital of banks subject to reform will likely be extended to three years, instead of the previous deadline of the end of this year.
Hantoush told Shafaq News Agency, “The Central Bank contracted last year with Oliver Wyman to conduct a comprehensive study of the banking sector,” noting that “the company has completed its study.”
He added, “The preliminary report was submitted three weeks ago, while the final report was recently issued. It included a package of mechanisms to address banking challenges and regulate dollar transactions. These mechanisms are currently under discussion between the Central Bank and the company.”
Hantoush pointed out that “the recommendations included raising the capital of all Iraqi banks to 400 billion dinars, in addition to paying $2.4 million over four years for banks, under conditions most notably merger or liquidation, as well as restructuring the capital so that relatives’ stake does not exceed 10%.”
He pointed out that “these conditions pose a significant challenge to the sanctioned banks, making it difficult to comply with the required increase,” emphasizing that “the matter requires discussions between the Central Bank and these banks to reach an acceptable formula.”
The economic expert expects that “the Central Bank will open a new dialogue with the consulting firm to reach a compromise, either by extending the capital increase period to more than three years, or by reducing the required amounts to be closer to the capabilities of Iraqi banks.”
shafaq.com
