Al-Rafidain Bank Enhances Social Protection with Salary Distribution in Iraq, 1 OCT
In a move signifying a commitment to social protection, Al-Rafidain Bank, one of Iraq’s leading financial institutions, has recently announced the distribution of protected salaries. This crucial development will ensure the continued financial security of individuals who depend on these salaries for their daily living.
Alleviating Financial Insecurity
The exact number of individuals who will benefit from this distribution hasn’t been specified in the bank’s announcement. However, the impact of this development is expected to be significant, especially for those who heavily rely on these protected salaries. The announcement underscores Al-Rafidain Bank’s dedication to ensuring that individuals receiving social protection benefits continue to do so in a timely manner.
A Beacon in a Troubled Economy
This move by Al-Rafidain Bank comes at a time when Iraq’s economic and political climate is marred by instability, which has led to a general climate of mistrust. Many prefer to stockpile cash at home rather than depositing it in banks, undermining the development of Iraq’s banking system. This system is already strained due to insufficient legal and regulatory frameworks and the influence of the country’s oil rentier model.
Despite these challenges, some individuals are looking beyond the traditional banking system, exploring opportunities in digital banking. Advocates argue that this could broaden the Iraqi public’s access to financial services and bolster economic development. However, cash remains the dominant mode of transaction in Iraq.
Embezzlement Scandals and Corruption
Al-Rafidain Bank’s decision comes in the wake of massive embezzlement scandals dubbed the “theft of the century” that has gripped the nation since mid-October. This scandal saw a network of thieves forge documents to withdraw 2.5 billion in cash from an idle government account. The money vanished into shadowy real estate purchases and foreign banks, implicating high-ranking officials, bank clerks, and crooked businessmen. The corruption case underlines that Iraq is in the grip of systemized corruption, which is devised, managed, and protected by the political elite. This elite group has controlled the country since 2003, dividing up power and resources among themselves.
Focusing on Social Protection
Against this backdrop of corruption and mistrust, Al-Rafidain Bank’s initiative represents a crucial step towards ensuring financial security for those covered under social protection schemes. According to the Social Protection Authority in the Ministry of Labor and Social Affairs, the social welfare salary for November 2020 has been released for more than 1,300,000 families across the Iraqi governorates. This amounts to more than 214 billion dinars.
The Director-General of Social Protection, Hussein Ali, stated that “the number of families with breadwinning men reached 963,676, benefiting from an amount of more than 161 billion dinars, while the number of families with breadwinning women reached 430,260, benefiting from 52 billion dinars”.
The social welfare salary is currently being paid monthly (instead of every two months) according to an agreement with Al-Rafidain Bank. This move is undoubtedly a beacon of hope in a troubled economic landscape, reflecting the bank’s commitment to upholding social protection and alleviating financial insecurity for numerous Iraqi families.
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