Algeria to offer interest-free loans to jobless people soon

The Algerian government considers generalizing interest-free loans for entrepreneurs and unemployed young people who want to create small enterprises and private projects, Echorouk has learnt.

This is a complementary step to the decision made in favor of residents in the south as part of emergency measures following riots over unemployment.

According to sources, the Algerian work minister Taib Louh held a meeting with employment department directors to talk about a proposal to generalize interest-free loans for jobless people who have small enterprise projects. The final decision will be made by the finance ministry.

If the proposal is approved, it may be integrated into 2014’s preliminary finance draft law.

This comes as interest-loans were criticized for violating the Islamic law as interest rates are forbidden in Islam.

Earlier on March 11^th, Prime Minister Abdelmalek Sellal gave an instruction to reduce interest rate on bank loans as part of small businesses support measures in southern Algeria.

In the north, small enterprise owners have to pay 10 percent of their projects value.