Algeria: Printing of 180,000 Billion Centimes (DA) To Cope With Ongoing Financial Crisis

The Finance Minister, Mr. Abderrahmane Raouya, has stated that the volume of the financial mass to be printed to finance the Public Treasury is estimated at 180,000 billion centimes (DA), which will be used after revising the credit and currency law, adding that this will allow the Treasury to borrow directly from the Bank of Algeria to face up to the dwindling public treasury revenues owing to the plummeting world oil prices.

The amendment was recently approved by the Parliament regarding Article 45 of the Credit and Currency Law. 

The amendment aims to allow the Bank of Algeria to lend to the Public Treasury on an exceptional basis during a five-year period to cover Budget financing needs.

For the year 2016, Treasury bonds were issued against the buy back of the Banking debt of Sonalgaz, and the Treasury bonds issued to Sonatrach in compensation for the differences in prices of imported fuel and desalinated water. 

It will also allow the Public Treasury, if necessary, to provide resources to the National Investment Fund as part of the State’s contributions to fostering investments or ensuring the long-term financing of public investment programs.