Iraq to ban cash payments at government institutions
Baghdad (IraqiNews.com) – The advisor to Iraqi Prime Minister Saleh Salman declared on Monday that cash payments at government institutions will be prohibited beginning next month, while private banking reforms will be adopted.
Salman told the Iraqi News Agency (INA) that the Iraqi government has engaged Ernst & Young to restructure six or seven of the country's state-owned banks, including the Industrial Bank of Iraq, the Real Estate Bank of Iraq (REB), Rafidain Bank, and Rasheed Bank.
The Iraqi official clarified that the Trade Bank of Iraq (TBI) has reached an agreement with K2i and KPMG to assist in restructuring its internal and external operations to match international standards.
Rafidain Bank, Iraq's largest government institution, would be renamed Rafidain First Bank, with the government's holding decreased to less than 24 percent, according to Salman.
Salman stated that the remaining shares will be offered to private banks and foreign investors. He expects the Iraqi government to finalize and implement the restructuring plan by the end of 2025.
Salman underlined that Iraq has made considerable progress in the use of electronic payment methods, with financial inclusion increasing from less than 10 percent in 2018-2019 to almost 40 percent.
All government payments will be conducted electronically starting next month, with payments in cash banned in government institutions.
Government reforms aim to reintegrate Iraqi banks into the global financial system after decades of isolation owing to sanctions and frozen assets.
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