Shafaq News – Baghdad

Iraq’s Rafidain Bank has not released December pensions due to a liquidity shortfall, leaving thousands of retirees without payment, a source said on Monday.

The source told Shafaq News that despite Rasheed Bank announcing it had completed distributions, and the General Retirement Authority confirming it had uploaded pension data to all banks, Rafidain has been unable to disburse funds.

“The delay is directly tied to insufficient liquidity.”

Retirees expressed frustration as “pensions were paid through other banks while Rafidain clients received nothing,” calling the situation unprecedented, according to the source. Many urged the government and parliament to intervene immediately to determine why the bank has been unable to process payments.

Over the past year, the country’s Parliamentary Finance Committee has repeatedly warned that state-owned banks — particularly Rafidain and Rasheed — face cash pressure due to rising obligations and slow government transfers. A Central Bank of Iraq (CBI) official told Shafaq News in March that recurring shortages stem from delayed ministerial allocations, heavy withdrawal demand, and administrative inefficiencies.

Rafidain, in particular, has previously seen disruptions, including salary delays in September 2024 and pension postponements in December 2024, which the bank attributed to scheduling issues.

Iraq’s pension system places heavy strain on public finances. The World Bank’s 2024 Iraq Economic Monitor reported that pension spending accounts for more than 13 percent of the state budget, while the General Retirement Authority says over 2.5 million pensioners depend on monthly payments — the largest share of them through Rafidain.

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