Source: Most government banks have ceased lending activity and there are no lending plans.
Source: Most government banks have ceased lending activity and there are no lending plans.
2026-08-22
Shafaq News – Baghdad
An informed source revealed on Saturday that most government banks have stopped practicing their credit activity, noting the absence of credit plans at a number of those banks for the current year, which has been reflected in the limited granting of loans and advances of all kinds.
The source told Shafaq News Agency that most government banks do not have clear credit plans, which has led to the suspension or decline of construction and renovation loans and financing for small and medium-sized projects, as well as loans allocated for investment and housing projects and electronic personal loans.
He added that the decline in credit activity in government banks raises questions about their role in supporting the economy and financing productive and investment sectors, especially given the need of small and medium enterprises and investors for bank financing sources that contribute to the implementation of projects and the expansion of economic activity.
According to the source, the government, the House of Representatives, and the Parliamentary Finance Committee must open the file on credit activity in government banks, and question their administrations about the reasons for the cessation or decline in granting loans and advances and the absence of credit plans, as well as the limited investment and financing activity in a number of those banks.
He stressed that activating credit activity and relaunching bank financing programs are important pathways to support investment and drive the economy, especially since the government program includes supporting investment and providing the necessary financing for projects through loans and banking initiatives.
The source concluded by stressing the need to develop clear credit plans for government banks that include measurable goals and indicators, in order to ensure that funds are directed towards productive and investment sectors and to enhance the role of the banking system in supporting economic development.
shafaq.com
