HIS OFFICE: AL-SUDANI DIRECTED TO EXPEDITE THE REFORM PROCESS OF RAFIDAIN AND RASHID BANKS., 27 MARCH

 HIS OFFICE: AL-SUDANI DIRECTED TO EXPEDITE THE REFORM PROCESS OF RAFIDAIN AND RASHID BANKS.

Prime Minister Mohammed Shia al-Sudani’s media office stated that the latter “directed the preparation of plans to expedite the reform process of the Rafidain and Rashid banks in accordance with international standards.” 

This came during a meeting devoted to following up on the reform measures of Rafidain and Rashid banks, attended by representatives of Ernst & Young. The meeting “witnessed a review of the work stages of the banking reform adopted by the government to restructure and develop Rafidain and Rashid banks, and discussed reconsidering their internal regulations in line with international standards and the objectives of banking reforms. It also discussed the issue of the two banks’ debts and their repayment mechanisms, and the measures taken to train their working cadres. In this regard, Al-Sudani directed the continuation of the reform process for the two banks, and for their managements to develop strategies that contribute to accelerating the reform process.”

The statement said, “The meeting followed up on the procedures for establishing a new bank, Rafidain First Bank, which was approved during the Cabinet session held on January 13th. The bank has a different vision, embracing modern technologies and international standards that will help implement the government’s financial and banking reform objectives, which will have a positive impact on the country’s economic trajectory and development.”

The statement indicated that “Ernst & Young submitted a report in which it reviewed the financial and technical offers for the project to establish the First Rafidain Bank.” 

For some time now, US attention has been focused on the state-owned Rafidain Bank, with calls for sanctions against it, describing it as a “window for smuggling dollars to Iran.” However, politicians and academics view the matter with pessimism, particularly since any impact on the bank would create financial tensions within Iraq, given its status as one of the most important government banks.

Earlier, Kurdistan Democratic Party (KDP) MP Sipan Sherwani spoke about what he described as “serious oversight” of Iraqi financial institutions, noting that Rafidain Bank “has not been audited for nine years.”