Algeria: banks grant $5 billion interest-free loans to young entrepreneurs

The number of applicants for loans to fund youth’s projects increased as the government dropped interest rate, according to the Central Bank’s report.

Banks granted $5 billion last year while loans to small enterprises were estimated at 360 billion DZ in 2012.

The same report said banks performance in dealing with small and medium-sized enterprises funding improved. It stressed the necessity of modernizing payment system and intensifying bank networks.

In 2012-2013, the State launched measures to support small and medium-sized enterprises in terms of loans.

Loans offered by Algerian banks represented 44.2 percent of GDP out of hydrocarbons in 2013 compared to 40.6 percent in 2012 and 2011.

Loans offered by public banks to small and medium-sized enterprises as part of support in youth employment reached 499.7 billion DZ in 2013 compared to 362 billion DZ in 2012.

The Central Bank suggested to intensify banking networks in the country and develop loans activity for small and middle-sized enterprises.

It also proposed to develop banking network to cover big urban centers and rural areas.