Algeria: “Consumer loans for local products to be restored as from early May 2015”

The Algerian Government is set to reintroduce shortly the consumer loan system for the benefit of the citizens but with on focus only national products.

However, the integration of this revised program won’t be so high, as it will not exceed the limit of 25 percent at best, while the number of the selected national companies offering targeted locally-made products doesn’t exceed ten in the first phase of this economic endeavour on account of myriad of availability and performance reasons linked to the laws of the market.

The projected integration rate won’t go over 40 per cent as part of this restored consumer loan program which is expected to come into force on May the first 2015 coinciding with the yearly celebration of the international labour day.

Renewed consumer lending should also benefit makers of electronics and household appliances, the UGTA said. Among the international companies producing under license in Algeria is Samsung Electronics Co., which sells washing machines, TVs, air conditioners and refrigerators under the Samha brand.

UGTA Secretary General Abdelmadjid Sidi Said hopes the renewed consumer lending will help save the country’s textile industry, which faces competition from cheaper Chinese imports, sources told Echorouk. The government will compile a list of goods that consumers can buy using bank loans.

“There’s a consensus for restoring consumer credit to promote goods produced locally, in total or in part,” according to economic experts. “A key element is to make sure that households don’t become over-indebted.”

In yet another move to boost and to safeguard the national economy from the fierce foreign competition, Trade Minister Amara Benyounes said that the next revision of the law on import and export provides for reintroducing import authorization to protect certain strategic products. As part of the revision of the law on the import and export the project of which should be submitted soon to the government, “we will introduce automatic and non-automatic import licenses,” he said during a press conference on the sidelines of a review meeting.

According to Mr Benyounes, these licenses will constitute a legislative tool to protect certain strategic nationally-made products. The move comes in accordance with the objectives of the government to reduce the level of imports and transfers of currency abroad. These will not be in contradiction with the commitments made by Algeria with foreign partners, particularly in the context of negotiations for its projected WTO accession.