Algeria borrows $1 billion from African Bank

Algerian President Abdelaziz Bouteflika signed a presidential decree to officialise the government’s decision to borrow 900 million euros i.e. $1 billion from the African Development Bank (ADB).

According to the decree, the deal was signed in Côte d’Ivoire between Algeria and the ADB to fund industrial and energy competitiveness support program.

This loan has been the first of its kind since Algeria paid all its foreign debts. 

The President assigned the finance minister to take all the necessary measures to obtain this loan.

Earlier in November, the ADB said on its website that its administration accepted to grant the loan for Algeria.

It added that the government needs to apply a strict economic policy to settle the financial situation in Algeria by improving incomes mobilization and optimizing expenses.

“This loan comes as Algeria’s incomes decreased due to oil price fall. Because of that, the government should apply a prudent economic policy based on budget control. All the available resources should be exploited and expenses should be optimized,” said the Bank.

It added that the industrial comptetivness support program is part of the new economic modal 2016-2030. It was launched on July 26th to create adequate climate for sustainable development, growth rates increase out of hydrocarbons and encouraging other productive sectors.

The same source also said Algeria should improve business climate through economic opening. “Energy sector competence should be raised and renewable energy use should be encouraged.”