Saturday Iraq News Posted by Tishwash at TNT 8-1-2026

TNT:

Tishwash:  Al-Sarraj: Current circumstances necessitate creating a conducive environment and expediting the formation of the cabinet.

Political analyst Ibrahim al-Sarraj believes that current circumstances necessitate creating a conducive environment and expediting the formation of the cabinet, particularly the security ministries.

Speaking to Mawazin News, al-Sarraj stated, “The lack of political momentum toward finalizing the cabinet is not related to the anti-corruption campaign targeting several officials and members of parliament, as disagreements among political parties regarding the cabinet predate the campaign.”

He added, “The disagreements among political blocs manifested in objections to certain nominees,” noting that “these objections were not based on objective grounds but rather aimed at marginalizing certain blocs due to existing disputes.”

He further explained that “Prime Minister Ali Mohsen al-Ahmad has an opportunity to create a conducive atmosphere by working to bridge the differences between the various political blocs, especially given the current regional situation, which demands the completion of the cabinet, particularly the security ministries.”  link

Tishwash:  Liquidity shortages threaten Iraqi private banks and push towards mergers to settle obligations.

A banking source revealed a shortage of liquidity in a number of private banks in Iraq, attributing this to the limited deposits and the decline in citizens’ confidence in private banks, which has weakened their ability to meet some local and international obligations and the requirements of the Central Bank of Iraq.

The source said that this situation may push towards the merger of a number of banks, noting that mergers also come within the requirements of reforming the banking sector and trends related to international standards.

He added that banks are required to have financial assets and insurance with the Central Bank of Iraq, explaining that a bank that suffers from weak assets or is unable to meet its obligations towards citizens may be subject to closure, provided that the rights of depositors are dealt with in accordance with the approved principles and controls.

The source explained that merging struggling or liquidity-deficient banks does not necessarily mean the loss of citizens’ money, as financial obligations and rights remain in place, but the recovery of funds may not be as quick and easy as depositors expect.

He pointed out that addressing the liquidity shortage problem requires restructuring the banking sector and strengthening confidence in local banks, in addition to increasing their ability to comply with regulatory and financial requirements, which contributes to reducing the risks of default and protecting depositors’ funds.  link

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Tishwash:  “No money” is a clear message that the crisis needs management, not excuses.

August 1, 2026

 The Iraqi government acknowledged on Friday that the country is going through a real financial crisis that has led to a change in the mechanism for disbursing employee salaries and delaying them until the Ministry of Finance has sufficient liquidity, amid the continued repercussions of the disruption to revenue exports through the Strait of Hormuz.

Government spokesman Haider al-Aboudi stated in a press conference that Iraq faces enormous monthly expenses, emphasizing that spending cannot continue using the same mechanisms as before. This admission came shortly after a striking statement by Health Minister Abdul-Hussein al-Moussawi, who succinctly summarized the crisis by saying, “There’s no money,” referring to the severe funding shortage plaguing the health sector.

These developments put al-Zaydi’s government to a critical test; economic experts believe that the crisis, despite its roots extending back to the era of former Prime Minister Muhammad al-Sudani, who successfully managed it cautiously, now requires decisive alternatives and an immediate halt to costly promises.

Observers criticized the continuation of additional government pledges, such as the proposal to distribute one million serviced residential plots and amend the retirement of security forces, in parallel with the inflation of special grade privileges, uncontrolled expenditures in ministries, and the salary of the Rafha detainees.

Social media platforms witnessed a widespread wave of anger, as one activist wrote on the “X” platform: “Delaying salaries means starving millions of families, while the privileges and operational budgets of officials have not been touched by any rationalization.”

On Facebook, another citizen commented: “The real crisis is not just in Hormuz, but in continuing to make fanciful promises and neglecting to manage liquidity scientifically.”

Experts emphasize that a safe financial transition requires immediately controlling side spending and rationalizing government consumption, in order to avoid exacerbating the liquidity crisis and securing the basic entitlements of citizens.  link

Tishwash:  Iraq enters a state of “financial hardship”… and a warning of a more severe crisis.

 Researcher and economic consultant Ziad Al-Hashemi warned on Friday (July 31, 2026) that Iraq has officially entered a state of “financial hardship,” noting that the government is going through its worst period while citizens are waiting to receive their financial entitlements.

Al-Hashemi said in a statement received by “Baghdad Today” that: “The government’s recent admission of the shortage of liquidity in its treasury is no longer surprising, after long months of stubbornness, denial and obstinacy, and after the continuous deterioration in revenues forced it to admit the bitter truth to the people.”

He added that “what is truly surprising is that there were those who were reassured that everything was going well, and that there was nothing to worry about, as long as Iraq had dollar reserves that allowed it to pay salaries normally.”

He stressed that “it is Iraq’s misfortune that its oil revenues are considered depleted revenues even before they reach the government treasury,” explaining that “the corrupt are waiting for their share, the party’s economic offices are waiting for their share, the armed groups are waiting for their share, the creditors are waiting for their share, and the ghost employees are waiting for their share, so that the real Iraqi employee comes last on the list.”

Al-Yassiri pointed out that “the problem under such a lax and undisciplined financial model does not lie in the decline in oil prices or the decline in exports alone, but rather in governments that have spent recklessly for years as if revenues would remain high forever.”

Al-Hashemi stressed that “Iraq does not suffer from a lack of resources, but rather from their mismanagement,” calling on the government to “reduce waste, control the payroll, stop fictitious employment, suppress corruption and recover looted funds, dismantle economic offices, and develop non-oil revenues.”

He explained that “any further rise in oil prices will only be a temporary respite before another, more severe financial crisis, unless these measures are taken.”

He concluded by saying: “The truth that must be stated clearly is that a state that is unable to protect its revenues and regulate its spending will not be saved by reserves forever, and the employee and the citizen will not be able to continue paying the price for corruption and mismanagement indefinitely.”  link

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Tishwash:  “I will leave if I remain shackled”… Al-Zaydi’s resignation shakes the coordination framework, and the weapons issue ignites the confrontation.

 In a remarkable political development, sources within the coordination framework, as reported by Al-Araby TV and followed by Al-Mustaqilla, revealed an escalating, undeclared crisis between Iraqi Prime Minister Ali Faleh al-Zaidi and the political forces supporting his government, reaching the point of hinting at the option of resignation.

According to the sources, Al-Zaydi expressed his dissatisfaction with the lack of response to his vision on a number of crucial issues, stressing that the continued obstruction of his government’s decisions may push him to take a decisive political stance.

These developments put the Al-Zaidi government in front of one of its most difficult crises since its formation, as the dispute is no longer about administrative details or differences in viewpoints, but rather about the nature of the security and sovereign decision and who has the final say in state matters.

The weapons issue: the flashpoint between al-Zaydi and the factions

According to the information circulating, the issue of restricting weapons to the state has become one of the most prominent causes of tension, after some factions did not respond to the Prime Minister’s directives regarding reorganizing the status of weapons and armed forces under the official state framework.

Observers believe that this issue represents the biggest test for al-Zaydi, as any attempt to redefine the relationship between the state and the factions will clash with complex political and security balances that have formed over the past years.

The unity government faces a moment of truth

The current escalation points to a deeper crisis within the Iraqi political equation, where the Prime Minister finds himself facing a difficult dilemma: either to proceed with implementing his program and strengthening the powers of the state, or to confront the pressures of the forces that contributed to his coming to power.

The al-Zaidi crisis raises a major question about the ability of Iraqi governments to make independent decisions on sovereign matters, especially when those decisions conflict with the interests of influential forces within the political and security landscape.

A political resignation or a warning message?

Politicians believe that al-Zaydi’s threat to resign may be a pressure tactic to rearrange the rules of the relationship with his partners, but at the same time it reveals the extent of the tension within the coalition that leads the government.

If the crisis turns into an open confrontation, Iraq may be facing a new phase of political conflict, the title of which is: Who has the final say… the government or the forces behind it?

The coming days will be crucial in determining whether al-Zaidi’s threat is merely a bargaining chip, or the beginning of a political crisis that could redraw the map of power in Baghdad  link