Algeria May Appeal Financially To China To Avert “IMF”

The American Bloomberg Economic-oriented Network expounded the current economic situation in Algeria in light of the repercussions of the new Corona virus and the decline in oil prices in international markets, and the implications of this on the diaries of the Algerians, and provided some specifications to meet the challenges of the next stage, chief among them being the assistance of the Chinese partner.
The network said that although Algeria is not feeling well in its current economic situation, Algeria refuses to resort to external borrowing, especially from the International Monetary Fund, (IMF) and the reason is the painful experiences that it lived with this fund, more than two decades ago.
Bloomberg quotes the statement of the President of the Republic, Abdelmadjid Tebboune, who refuses to resort to foreign borrowing, as this has adverse repercussions on national sovereignty, according to the perspective of the Algerian authorities, who are sensitive to everything that could harm national sovereignty.
The Algerians maintain a dark view of the relationship with the International Monetary Fund. During the decade of the nineties of the last century, while Algeria was living in a deficit in the payment of the debt and its services, it was compelled to conclude an agreement to reschedule the debts, and then resulted in the layoffs of hundreds of thousands of workers, after the enterprises’ closure.
Dozens of public institutions have recommendations from the International Monetary Fund, which are measures that have been harshly implemented by former Prime Minister Ahmed Ouyahia and then accepted by Reda Malek.
The network talked about the African countries rushing to request loans from the International Monetary Fund, similar to Nigeria and Ethiopia, who have accepted aid from the IMF, in addition to South Africa, which said it is negotiating a $ 4.2 billion loan, as well as Tunisia and Egypt.
The network quoted expert Dalia Ghanem, a researcher at the Carnegie Middle East Center, as saying that “the International Monetary Fund has become a symbol of the crisis of the eighties and nineties, and it represents a painful memory for the Algerians.” The debt crisis prompted the country to seek International Monetary Fund assistance, and the government struggled to cut spending and create jobs.
According to the same source, the International Monetary Fund does not mind providing aid to Algeria, but the country prefers to search for other options, and on top of these options is borrowing from friendly countries, similar to the People’s Republic of China, which is considered a traditional and reliable strategic partner for Algeria since the early beginnings of independence.
“Help from China is the best option,” said Bloomberg, and it also talked about other options, including the government’s cut operating costs of energy projects in half, and tax reforms, but this solution remains unpopular in the government’s perspective, due to the initial social trends.