Islamic loans and leasing credit to spur national financial market in the short term

date 2017/09/12 views 1401 comments 0

icon-writer Samira Belamri /*/ English Version: Med.B.

Prime Minister Ahmed Ouyahia's Government has stuck to the option of continuing to rationalize spending and reduce the operating budget, which includes wages. Mr. Ouyahia intends to make only regular payments to cover them, while the state's investment budget will be financed by loans to the Public Treasury.

PM Ahmed Ouyahia endorsed a special strategy for the management of the financial sector in order to cope with the crisis and to mitigate its nefarious impact.

He also directed his plan towards supporting the reform of the banking system in parallel with the rationalization of the state budget.

The action plan of the government confirmed that the latter intends to adopt a new method of managing the budget in order to reach multi- spin-offs, as spelled out under the Finance Act for the current year, and which is to be extended up to 2019.

The Government also intends to channel non-traditional financial resources specifically for the shoring up of the state investment budget so as to rationally respond to human development needs, to achieve basic infrastructure, to accompany development and growth, and to continue to rationalize the expenses of the State's administration so that it will be covered in the end with regular finances only after the recent amendment of the Money and Credit Act.

 However, it is stated that the rationalization of the public expenditure regarding state subsidies for the benefit of population will continue. The rationalization of direct subsidies will also depend on the completion of the well-prepared file, which is the draft review of support and selective adoption to reduce the costs of the annual budget. This file, which will be followed up after consultation with economic and social operators will then be submitted to a free-wheeling debate in the two houses of parliament.

In the process of improving the collection of regular tax resources, which in recent years has been characterized by inadequate reform attempts, such as the periodic review of the taxpayer, the improvement of fiscal resources, which remains closely linked to more effective fiscal management and the ability of the public authorities to clamp down on tax evasion practices.

The government affirms that progress in this area will pass in particular through the modernization of fiscal administration, the development of local tax collection and the adoption of new procedures that allow the tax administration to collect its dues faster, including during tax assessments, and activate the system of monitoring and punishing criminal evaders.

In terms of improving the management of state property, the completion of the land survey as well as the modernization of property management will be a priority for the government in order to improve state resources, facilitate real estate transactions between citizens and facilitate access to real estate.

At the level of the banking and financial systems, the Government will spur on the reform process in various dimensions by focusing on the completion of banking reforms and the overhauling of financial institutions in order to improve their efficiency, and competitiveness, but only by adapting the regulatory framework governing banking activity in particular through the generalization of modern and up to date payment tools.

Most importantly, the government's plan of action is to reduce the duration of study of loan portfolios through decentralization of decision-making, by activating the loan market and enhancing the supply of banking products adapted to the needs and demands of customers, including rental credit and by initiating financial Islamic products in line with the Chariaâ.

With regard to the capital market and the stock market, the government says it will develop the capital market as well as the stock exchange in order to offer alternatives to finance investments and raise capital in parallel with its quest to promote the use of various tools designed to encourage and accompany investment in the form of investment guarantee funds, at the level of all  the country’s provinces

The Government asserts that the National Investment Fund will be used in accordance with its provisions to forge temporary contributions to necessary investments, including private ones, of medium or large importance.

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