Consumer loans ban will solve financial crisis, says expert

Consumer loans ban is an efficient solution to solve the financial crisis, expert says.

• “Consumer loans ban will make the Algerian economy balanced again and will revive it. “It will also allow studying the market mechanisms in a scientific and realistic way,” Doctor Mansour Ben Amara said in the International Meeting on Deflation in the Mediterranean Sea held on October 6-7th in Annaba (east of Algiers).
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• He added that Algeria’s finance law 2009 took a set of practical measures to stop the consequences of the global crisis.
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• Earlier, Algeria banned consumer loans in cars and home appliance as part of those measures.
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• Experts believe the global financial crisis is a result of a failure in economic visions and international relations.
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• “Deflation has a direct negative impact on economic institutions through the increasing rate of unemployment,” Doctor Ben Amara said.
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• “The Algerian economy is mainly linked to hydrocarbons. Because of that, foreign market unrest affects it in general,” he added.
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• He believes loans were pushing people to consume more than his financial means. “That led to a general problem with a negative impact on the Algerian society.”
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• Experts from Algeria, France, Morocco and Tunisia attended the meeting held in the University of Annaba. They dealt with the role of banks in solving the financial and economic problem.
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• Doctor Ban Amara believes quick adoption of a new economic policy related to other financial resources would reduce the consequences of the crisis.