baghdad-INA
Today, Friday, Rafidain Bank announced the suspension of credit activity in the middle of next month.
The bank’s media office stated in a statement received by the (INA), that, “Given the approaching end of the fiscal year and for the purposes of the submission applicable annually and to make way for the liquidation of outstanding funds, preparing statistics and annual inventory, and organizing budgets, all types of credit activity will be stopped on 12-15-2024 and no longer.” Promoting loan applications and other banking services.
According to the statement, the bank directed its “branches in Baghdad and the governorates to complete all requests for transactions that completed the advanced stages of their procedures before the above date,” indicating that “the work of promoting loans will resume early next year.”
What are the potential financial impacts on customers due to Rafidain Bank’s suspension of credit activities?
Interview with Dr. ali Al-Mansoori,Banking expert,on Rafidain Bank’s Suspension of Credit Activities
Time.news: Thank you for joining us today, Dr. Al-Mansoori. Recently, Rafidain Bank announced a suspension of all credit activities from December 15, 2024, as thay prepare for the fiscal year-end. What are the key reasons behind this decision?
Dr. Ali Al-Mansoori: Thank you for having me. The decision by Rafidain Bank primarily stems from the need to finalize their annual financial reporting processes. This includes liquidating outstanding funds, preparing necessary statistics, and conducting an annual inventory. By halting credit activities, they can more effectively manage their financial obligations and maintain a smooth transition into the new fiscal year.
Time.news: Could you elaborate on the implications of this suspension for both the bank and its customers?
Dr.Ali Al-Mansoori: Certainly. For Rafidain Bank,this operational pause helps ensure that they accurately assess their financial status before the year closes. For customers, however, it may lead to delays in accessing credit and loans, which could disrupt their financial plans. The bank’s directive to finish existing requests before the cutoff date is crucial, as it encourages clients to finalize their transactions promptly.
Time.news: Rafidain Bank has advised its branches to complete all ongoing transactions before the suspension takes affect.How can customers best prepare to navigate this transition?
Dr. Ali Al-Mansoori: Customers should prioritize their loan applications and any banking services they require. It’s advisable to engage with bank representatives promptly to clarify any outstanding requirements or additional documentation needed. Staying informed about the timeline and ensuring that all applications are submitted ahead of the December 15 deadline will help mitigate any disruptions during the suspension period.
Time.news: Given that Rafidain Bank plans to resume loan promotions early next year,what advice would you give to prospective borrowers looking for financial support post-suspension?
Dr. Ali Al-Mansoori: Prospective borrowers should conduct thorough research on the loan products that will be available once operations resume. They should also assess their financial situation and creditworthiness to strengthen their applications. Attending informational sessions offered by the bank or reading their updates will provide valuable insights into what products may be best suited for their needs in the coming year.
Time.news: In your opinion, how does this temporary suspension affect the broader banking sector in Iraq?
Dr. Ali Al-mansoori: This kind of suspension is not uncommon in the banking industry, especially as fiscal year-end approaches. It serves as a reminder for other institutions to align their practices accordingly. while there may be short-term inconveniences, the focus on annual reporting can ultimately promote better financial health within the sector, leading to more responsible lending practices and greater stability in the long term.
Time.news: Thank you, Dr. Al-Mansoori, for sharing your insights on Rafidain Bank’s decision and its implications for the banking sector. This information will certainly help our readers prepare for the upcoming changes.
Dr. Ali Al-Mansoori: It was my pleasure. Thank you for having me,and I hope this helps guide both consumers and industry stakeholders through this transition period.