Iraq external debt settlement has taken a major step forward, as Rafidain Bank announced the resolution of 87% of the country’s foreign debt. This achievement demonstrates strong cooperation between the Iraqi government, the Ministry of Finance, and Rafidain Bank in managing financial obligations efficiently.
According to the bank’s statement, officials conducted strategic negotiations to settle international liabilities. These talks produced clear financial and legal progress. As a result, Iraq managed to significantly reduce its external debt burden.
Moreover, Iraq external debt settlement efforts show the country’s full commitment to the Paris Club Agreement. With authorization from the Council of Ministers, Rafidain Bank concluded important deals with creditor companies in France and the Netherlands. One major success included Council of Ministers Resolution No. 403 of 2025. This resolved three lawsuits from Dutch companies with over 90% concessions granted in Iraq’s favor.
In addition, Rafidain Bank achieved major legal victories outside Iraq. The bank successfully defended Iraq’s interests in courts located in Turkey and Lebanon. These efforts allowed the recovery of more than $2.8 million. This legal success highlights the strength of the bank’s legal department and its ability to protect state assets on an international level.
Furthermore, Iraq external debt settlement continues with plans to resolve the remaining obligations. The bank is actively finalizing settlements, which are likely to boost Iraq’s sovereign credit rating. Financial analysts believe this progress will encourage more investment and improve confidence in the country’s economy.
Not only does this development enhance Iraq’s financial image, but it also reflects its dedication to responsible financial management. Iraq’s ability to settle long-standing international claims through negotiation and legal strategy strengthens its global credibility.
Going forward, Rafidain Bank remains focused on completing the debt file. Continued progress in this area ensures better fiscal balance and demonstrates the country’s growing role in global financial systems. For Iraq, a stronger sovereign rating opens doors to wider funding options and international partnerships, all built on financial discipline and legal success.
