PM Abdelmadjid Tebboune: "Resorting To Foreign Debt Is Forbidden"

date 2017/07/30 views 1046 comments 0

icon-writer Mohamed.L/English version: Dalila Henache

Prime Minister, Abdelmadjid Tebboune, denied on Sunday, the government's intention to resort to external borrowing despite the financial difficulties it faces due to the oil prices' collapse.

During the preparatory meeting for the next tripartite, Tebboune said: "Resort to foreign debt is forbidden and we do not accept it even if we think about it. We will not pledge our sovereignty under any circumstances and this in compliance with the instructions of the President of the Republic, Abdelaziz Bouteflika".

"In light of the imbalances of the major national economy by the decline in oil revenues, we will use our potential few or large".

"The financial resources of Algeria are difficult" he recognizes, adding that "the state has the financial means to continue to fund priority development projects, especially in the housing, health, education and wage sectors, and to import up to $ 35 billion or $ 36 billion a year in necessities".

"Algeria's ambition goes beyond that, as it seeks to reach the ranks of emerging countries as soon as possible through the establishment of an integrated economy" he added.

"The state intends to continue public investment programs, but in a more rational way. It is now worth assessing the efforts that are made in this field, especially since the country was spending about a third of its gross domestic product as public investments, which is a large sum of money".

"Public investment gives dynamism to the national economy, but ultimately there is only the institution which is really capable of creating wealth".

"In this context, we should focus on small and medium-sized enterprises - rather than large investments that did not have the expected results - based on the fact that such institutions were cost-effective and did not require substantial funding".

"These small and medium enterprises will be directed to meet the needs of the local market, as it is one of the most important consumer markets in the region".

"We have the priority in investing in our market and we will not import products that are widely consumed, if we succeed in developing local textiles from small and medium enterprises".

Speaking on the economic prospects of the country, he said: "Algeria reached the halfway point in the process of diversifying its economy and the continuation of the rest of the road is dependent on the convergence of a unified economic vision that balances the interests of citizens and the state and the institution", which will be the focus of the discussions of the next tripartite that will be held on September 23 in Ghardaia (Southern Algeria).

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