Banks Ask 6500 SMEs To Pay Debts

Over 8,000 small enterprises are facing financial problems and begged the government to give them public deals otherwise they will face bankruptcy, Head of the National Federation of Young Entrepreneurs, Kheireddine Hamel, said.

“More than 6,500 institutions are facing threats from banks of seizing their materials although the legal conditions for the seizure are not complete”. 

“Banks are now pursuing 850 small enterprises, which are the beneficiaries of the support loans under the various forms of ANSEJ, ANGEM and CNAC”.

In a statement to Echorouk, Kheireddine Hamel praised the decision of the Labor, Employment and Social Security Ministry, to set up a convoy that roams the country’s states to count the number of institutions that are facing financial problems or that are involved in judicial proceedings with banks, or those on the verge of bankruptcy. 

“Today, there are 1.250 million SEs in Algeria, which are reliable to build the national economy and get out of the oil crisis. However, over 20,000 institutions are registered at the federal institutions, which are facing the shrinking of jobs opportunities, and facing difficult financial problems”.

In the language of the numbers, Hamel confirmed the collection of 80,000 demands for the bloc under the guise of the federation of young contractors, 8000 institutions that are living difficult financial problems, 6,500 institutions that are threatened with the seizure of their equipment by banks, and 850 institutions that are followed judicially by banks that lent them money. 

“These enterprises did not abide by the privileges that were supposed to be granted to these young people, and which the government set in its program, as a detailed report will be filed on these abuses and will be placed at the table of the Labor Ministry and even the Prime Ministry”.

He praised the decision of the Prime Minister, Ahmed Ouyahia, to prevent foreigners from tenders and public transactions except in very unusual cases, and to give all deals to national institutions, speaking of new future experiences in Algeria, through the formation of gatherings between public and private institutions to complete the projects, which gives impetus to the process of completion works and even to small enterprises, and gives an added value to the national economy, considering that it is time to the small and medium enterprises to impose themselves in the national market, especially in areas that have achieved brilliance such as construction, agriculture, tourism, and construction of handing Networks in general.

“A decline was recorded in the rate of youth who benefited from ANSEJ, ANGEM, and CNAC in 2017 for the creation of SMEs because of the financial constraints that is faced by the old beneficiaries, and this is proved by the statistics of the directorates of agencies and the state offices”.

“A new road map will be drawn after completing the work of the convoy which creation was ordered by the Labor Minister”.

“We prepare for the organization of an International Fair in March 2018, in which 3000 SMEs will present their products to the major dealers and in the presence of prominent actors in the national market, which will be an opportunity to create new jobs and partnerships for these institutions”.