“Where did the funds from Rafidain and Rashid banks go?”… A liquidity crisis paralyzes government loans.
“Where did the funds from Rafidain and Rashid banks go?”… A liquidity crisis paralyzes government loans.
2026-02-05
Shafaq News – Baghdad
An informed source revealed on Thursday that the granting of advances and loans in government banks, especially Al-Rafidain and Al-Rasheed banks, continues to be suspended due to a lack of financial liquidity and the absence of clear credit plans.
The source told Shafaq News Agency that government banks, specifically Al-Rafidain and Al-Rasheed, have witnessed a significant decrease in their cash assets after having sufficient liquidity to support citizens through loan and advance programs, noting that this necessitates holding those responsible for wasting public money accountable and revealing the fate of the liquidity that was previously available.
He added that the absence of strategic and credit plans, the failure to introduce modern technologies and advanced electronic technology, and the continued reliance on traditional systems and paper methods, contributed to the decline in the performance of these banks and their failure to keep pace with banking development.
The source indicated that these failures were clearly reflected in the weakness of revenues and the failure to strengthen the state treasury, which calls for the intervention of regulatory bodies and parliament to assess the performance of government banks, especially Al-Rafidain and Al-Rasheed.
The source stressed the need for members of parliament to intervene by making administrative changes in the management of those banks and bringing in professional and specialized expertise in order to elevate the banks to the ranks of advanced institutions and enhance their role in supporting the national economy.
He also stressed the need to hold accountable those who are negligent and responsible for the failure to develop these banks, and to pursue cases of public money waste and suspicions of corruption, especially those related to granting loans and advances based on favoritism and nepotism, stressing the importance of subjecting these cases to investigation and legal accountability, as well as the cases of the foreign branches of Al-Rafidain Bank that are threatened with closure due to mismanagement and failure to manage those branches without professional methods and expertise.
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