Consumer loans officially launched in mid-September

Bank of Algeria decided to launch the consumer loans and apply them officially by mid-September, in the wake of the separation of this financial institution in the official deadlines for the centralization of the management of the risk loans into service, after 9 months of waiting to apply this legislative article that is contained in the initial finance bill for the current year, as one of the mechanisms to encourage the national production, on the grounds that the consumer loans are exclusively addressed to the latter, no matter what the merger ratio.

Echorouk sources, from the Finance Ministry, Bank of Algeria notified the latter that it sent official correspondence to the Sub-Directorate for conducting the loans’ risk and integrated checks, to complete quickly the experimentation processes for the centralization of management of risks that are considered as a mechanism that gathers banks and financial institutions, to ensure coordination between them, to impose censorship on consumer loans, which are not entitled to any citizen to benefit from only once of the total accredited banks in Algeria.

According to Echorouk sources, Algeria Bank’s instruction came as an echo of the concern that was expressed by the government from the delay in the process of the return of consumer loans that have disappeared from the financial arena under the Supplementary Finance Act of 2009.

This “resentment” forced the Bank of Algeria to move and rush the application of the centralization in conducting the loans risks, as August, 16, was identified as the deadline for ending the technical experiments and circulating them to all financial and banking institutions by the beginning of the week, that the conduct of credit risk mechanism will be practical on September, 15, and its entry into service will allow the professional banks and financial institutions to study the consumer loans that are directed exclusively to Algerian citizens who are living in the country.

It is known that the governor of the Bank of Algeria, Mohamed Laksasi, already confirmed in several media statements, the impossibility of adopting the consumer loans in an official capacity, unless the activation of centralization in the conduct of credit risks. For a number of considerations relating to the control of the movement of funds that are coming out of banks in the form of consumer loans, but this mechanism noticed delays in adopting and resending them, on the grounds that Laksasi identified the beginning of the second semester of the year for its entry into force, but its delay expanded and consumed another three months, like the decision to cancel the application of Article 87 bis of the labor law and re-formulating it, which did not enter into application only by the beginning of the month and with a retroactive manner from last January.