Rafidain Bank Halts Loans, Advances, and Investment Funding Amid Budget Constraints
Informed banking sources have confirmed that Al-Rafidain Bank has suspended all advances, loans, and investment project financing, citing a combination of financial and administrative factors.
The sources told dinaropinions.com that the primary reason for the suspension is the depletion of financial allocations designated for lending during the current fiscal year. The bank reportedly issued substantial amounts in loans and advances throughout the year, ultimately exhausting its allocated budget.
According to the sources, the halt also coincides with the close of the fiscal year, preventing the bank from issuing any further loans until new allocations are approved.
Additionally, the sources highlighted a key structural issue:
“The process of granting loans throughout the year was conducted manually, not electronically,”
which contributed to slower processing, limited oversight, and potentially inefficient distribution of funds.
The suspension is expected to remain in effect until the start of the new fiscal year and the release of fresh financial allocations.
