Algerians Are Asked To Buy Debentures With No Profits

date 2016/10/18 views 345 comments 0

icon-writer Imane Kimouche/English version: Dalila Henache

Finance Ministry prepares the launch of two new kinds of debentures in the coming days, as the interest of the first loan is 8% and it is addressed to people who are looking for larger profitability of debenture, while the second is 0%, and it will be addressed to the citizens who have decided to show solidarity with the government in the oil crisis through subscribing to buy debenture loans from the public treasury, banks and insurance agencies then withdrawing them after 3 years without benefits.

Finance Ministry identified the subscription rate in the second phase of the debenture loan for 6 months, along the lines of what happened in the first phase, which was launched on last April,17, and continued until October, 17, when the government targeted primarily businessmen, after organizing something like ceremony of collecting money by businessmen, syndicates and public institutions and even banks, as all of these categories bought subscriptions that equaled $ 1.5 billion, while the debentures in the new version will be primarily directed to the citizens, whether the category of researchers from the higher interest rate or those who are convinced of the need to show solidarity with the government in the oil crisis.

Previously, government announced the possibility of extending the period of subscribing in the debentures' list, if the latter will notice a large demand by the Algerians, or find improved formats that suits with the public demands, knowing that it launched debentures worth 50.000 DZD, and another worth 10.000 DZD, and a third for businessmen worth 100.000 DZD, with an interest rate of between 5 and 5.75%.

Parallel with launching debentures by the Ministry of Finance through the public treasury, public institutions also prepare for borrowing money from citizens via offering debentures that pass through Algeria Stock Exchange Foundation, in search of new sources of funding, by enabling citizens of the subscription on behalf of these institutions and obtain a percentage of the profits.

Sonalgaz group started in the beginning of the current year its negotiations with Algeria Stock Exchange, to agree on a suitable formula to sell their debentures to the Algerians. A project which is expected to be launched in the coming months, in light of the financial deficit, which is faced by this public institution, and which is equivalent to 1,200 billion DZD, with the knowledge that the current Minister of Energy, Noureddine Bouterfa, asked before leaving Sonalgaz, to give him a financial loan to finance the company's s projects.

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