Algeria gets foreign loan

ADB African Bank announced that it twill grant Algeria a loan of 900 million euros to help it in its industrial competitiveness support. Algiers relies on this program to diversify its economy.

The bank said on its website that its board of directors accepted to grant the loan because Algeria needs to follow a strict economic policy. Financial situation should be settled by mobilizing incomes and optimizing expenses.

The bank added that the loan comes as Algeria’s revenues decreased following oil price fall. This imposes on the government to apply a vigilant economic policy to control and support budget. 

The bank also said the industrial competitvness support is part of Algeria’s new economic modal 2016-2030. It was adopted by the government on July 26th.  This aims at creating a suitable climate for sustainable development, raising growth averages out of hydrocarbons and encouraging other productive sectors. 

According to the same source, Algeria also needs to improve business climate through economic opening. This aims at improving energy sector competence and encouraging renewable energy usage.

The loan has been the first of its kind since Algeria paid its foreign debts in 2008. It comes as the country experiences an economic crisis and unstable oil prices since June 2014.

Earlier, the chairman of the Forum of Enterprise Chiefs Ali Haddad called on the government to borrow money, saying it would be a normal endeavour.