Algeria: 1,100 Billion Centimes (DA) To Rescue “Failing” Public Enterprises From Specter Of Privatization

The Algerian External Bank (BEA) and the National Bank of Algeria (BNA) have set up a fund to finance large and medium-sized public institutions with financial difficulties, with an average value of 1,100 billion centimes (DA) to be provided by the two salvaging banks, while the fund will be managed by a US financial partner.

According to Echorouk’s sources, it was decided to set up this financial fund between the Algerian External Bank and the National Bank of Algeria worth 550 billion centimes (DA)  for each party, with a total value of 1,100 billion centimes (DA), and it was decided to sign a contract with a well-known American financial institution to manage the relevant fund.

This rescue financial package is meant to salvage  those public enterprises that suffer from a financial deficit and major hurdles, so as to allow the Government not to have to privatize or sell these troubled companies by  giving them also a new chance to stay on in the market and to maintain their normal functioning.

According to the same sources, the fund’s mission, which will enter into the capital of these companies within a period of 5 years, will be geared to the rehabilitation and development of these cash-strapped companies and give them a new opportunity to survive.

This came out  after reports confirmed from the office of Prime Minister Mr. Ahmed Ouyahia that a host of public enterprises have been facing acute financial problems as the Government  announced that there are no new donations to public institutions and that the latter are thus compelled now to shoulder their burdens and manage their expenses and act as economic institutions of a commercial nature, by seeking to this effect independent financing, especially  as the country is still facing up to the protracted oil crisis and the scathing erosion of Treasury Revenues.