5 Scenarios To Offset Losses Of Oil Barrel Instead Of Printing Money

The Algerian Economic Forum has drawn up 5 scenarios from which the government can get inspired during the next stage to procure new sources of funding, instead of printing money that the President of the Republic, Abdelmadjid Tebboune, stressed he will not resort to anyway, to ensure that the inflation rate and the purchasing power of the Algerian citizen are not hurt.

The Secretary-General of the Algerian Economic Forum, Zan Yahia, confirmed in a statement to “Echorouk” that a 30-page file has been prepared, which contains 5 proposals for managing new funding sources to confront the scarcity of treasury revenues and the deterioration of the price of a barrel of oil, instead of the difficult option that the President of the Republic Abdelmadjid Tebboune emphasized will refrain from it, which is printing money.

These solutions are – according to Mr Zan Yahia – in the contribution of businessmen in financing projects in exchange for certain guarantees, stressing, “A solidarity fund must be created with the contribution of businessmen, who have always benefited from the generosity of the state, and directing these funds to meet the needs of projects in exchange for certain guarantees for those businessmen, whose number is estimated at thousands, and they have the capabilities to do so.

Our interlocutor also suggested recovering the taxes found outside the treasury which – experts had previously estimated at 200 billion dinars – indicating that these funds would give a boost to the national economy, in addition to retrieving loans and bank loan installments granted to businessmen who are in arrears, including those in prison.

He further noted that the latter benefited from major loans, and they haven’t paid them off until now, while calling for reducing the supply budget to the maximum during the current period, by notably using insurance companies.

On the other hand, the Algerian Economic Forum valued the government’s decision to return to closing the shops and businesses that are not related to the goods and materials necessary for consumption, stressing that this decision will avert a spike in the Covid 19 pandemic, indicating that despite economic losses incurred, everyone knows that it is not possible to study the opening of shops before End of May, during which experts expect to control and block the pandemic.

The Secretary-General of the Algerian Economic Forum said that the situation before did not allow for the opening of shops, but the merchant societies insisted on this to free the merchants from the financial losses, which even if they get bigger they are not comparable to the losses of the Corona virus pandemic, especially since the conquest coincided with the month of Ramadan, adding: “The best decision that can be made today is to close, quarantine, and anticipate, and wait until the end of the month”.