Iraq's Rafidain Bank Reduces Foreign Debt Liabilities

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 US$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.