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Iraq Business
31-07-2025
- Business
- Iraq Business
Iraq Reduces Foreign Debt Liabilities
By John Lee. Iraq's state-owned Rafidain Bank has announced that it has "completed" 87 percent of its foreign debt obligations through high-level legal and financial negotiations, significantly reducing the country's external liabilities. As part of Iraq's adherence to the Paris Club Agreement and with direct Cabinet approval, the bank concluded major settlements with Dutch and French creditor companies. The most notable was under Cabinet Resolution No. 403 of 2025, which settled three Dutch lawsuits with a waiver exceeding 90 percent of the claimed amounts in favour of the bank. Additionally, the bank achieved key legal victories in Turkey and Lebanon, recovering over $2.8 million in assets. According to a statement from Rafidain, this highlights the competence of Iraq's legal apparatus in defending state interests abroad. Rafidain Bank confirmed it is pursuing final settlements to close the remaining debt portfolio, aiming to bolster Iraq's sovereign credit rating and reinforce global confidence in its fiscal governance. (Source: Rafidain Bank)
Iraqi News
30-07-2025
- Business
- Iraqi News
Rafidain Bank settles 87% of Iraq's external debt, boosting sovereign rating
Baghdad ( – Rafidain Bank announced today, Wednesday (July 30, 2025), a significant achievement in managing Iraq's external debt, completing 87% of its foreign indebtedness file. This progress highlights effective institutional coordination between the government, the Ministry of Finance, and Rafidain Bank. In a statement received by the Iraqi News Agency (INA), the bank revealed substantial headway in settling international obligations through high-level financial and legal negotiations, resulting in a tangible reduction in the volume of external debt. The statement emphasized Iraq's commitment to the Paris Club Agreement. With direct approval from the Council of Ministers, Rafidain Bank finalized major negotiated settlements with Dutch and French creditor companies. A key highlight was Council of Ministers Resolution No. 403 of 2025, which settled three lawsuits filed by Dutch companies with a concession rate exceeding 90% in favor of the bank. Furthermore, Rafidain Bank has achieved notable legal successes abroad, particularly winning lawsuits in Turkey and Lebanon, which enabled it to recover over $2.8 million US Dollars. This reflects the efficiency of the bank's legal department and its capability to defend the state's rights before international courts. The bank affirmed its ongoing efforts to conclude the remaining aspects of the file through final settlements. This comprehensive approach is expected to enhance Iraq's sovereign rating and solidify international confidence in its financial stability and commitment to sound financial governance.
