Banks Refuse to Buy Shares of Companies Listed in Algeria Stock Exchange

Shareholders of public and private companies which are listed in Algeria stock exchange collided with the refusal of the banks to buy the shares that the owners put up for trading under the pretext of the end of the contract term, which links some of the companies that are listed at the stock exchange and banks, on ensuring the liquidity of shares that does not exceed usually one year, as a result of the banks refusal‬ to lift ‭up the liquidity term to three years or ‭more, like the owners want, ‭as a measure of stock ‭of the government to give a push ‭ ‬ ‭ ‬ ‭ ‬ to support and develope the financial market . ‬

The contract of ensuring the liquidity allows any shareholder to sell easily shares that were bought during the first year of operation, or during the contract period if it exceeds more than one year, by going directly to the offices of the bank or banks that are contracting and gives an order to sell his shares with ease.

An important source from the Stock Exchange of Algeria, told Echorouk, that evasion of public banks and banks that contribute to the process of ensuring liquidity, will hit the credibility of the financial market and put the commitments made by the government through the Ministry of Finance, with public and private sectors to develop stock market is on the line. The failure of the two attempts, the first with “Saidal” and “Aurassi” and the second with “Alliance Insurance”, kills what’s left of hope in the development of the financial market through the conviction of the national private sector of believing the promises of the government in reforms of the financial market, and providing new mechanisms to finance the national economy through the operations of public savings. The belief that prevailed at the beginning is behind developing the financial market of Algeria, and enabling the private sector to prepare a new space to get the funds that are necessary for progress under new conditions, far from the pressures that are incurred at the private sector, ‭when resorting to the ‭traditional loans ‭from the banks‭. ‬