Source: Al-Sudani directs financial reforms, halting capital increases for US-sanctioned banks
Shafaq News/ Iraqi Prime MinisterMohammed Shia Al-Sudani issued directives related to financial and bankingreforms, including a halt on capital increases for banks subject to USsanctions, a government source revealed on Thursday.
The source told Shafaq News Agency,"Al-Sudani, before leaving for New York, held a series of meetings withbanks and the Central Bank of Iraq (CBI), where the discussions detailed the CBI'splan to rehabilitate private banks through contracting with an internationalconsulting firm."
The PM emphasized the importance ofthe development plan for private banks, to be implemented by Oliver Wyman company,ensuring clarity in terms of timelines, distribution of responsibilities, andthe issuance of progress reports.
Al-Sudadi’s directives included acceleratingthe implementation of the Economic Ministerial Council recommendations tosupport Iraqi banks, notably by postponing capital increases for banksrestricted from dollar transactions by the US Treasury.
The source also indicated that “Al-Sudaniinstructed the preparation of a study to activate the local card project andencouraged Iraqi ministries and institutions to increase their dealings withlicensed Iraqi banks for various banking services and to open accounts withthem.”
On Monday, Al-Sudani received USDeputy Treasury Secretary Wally Adeyemo and several officials from the TreasuryDepartment, where Adeyemo reaffirmed support for the CBI and PM's reform agendaaimed at improving the country's economic landscape.
The PM emphasized that thegovernment has made significant progress in financial and banking reforms,completing 95% of banking transfers through the electronic platform, with theremaining 5% to be finalized by the end of 2024.
In turn, Adeyemo expressed readinessfor cooperation and partnership to advance economic development.
