Consumption loans: interest rate raises controversy in Algeria

An official announcement is expected to be made on Thursday about consumption loans following a large controversy about interest rates, Echorouk has learnt.

The announcement will be made in a tripartite meeting as a joint ministerial committee examined the issue. The interest rate is fixed at 2 percent amid anger among a number of specialists.

This announcement will be happy news but many Algerians will be disappointed due to the interest rate which is forbidden in Islam.

Fares Mesdour, a specialist in Islamic economy said the committee in charge of examining the consumption loans issue neglected religion. “The interest rate is not allowed in Islam. Because of that, most of Algerians will boycott those loans.”

“The government should have thought about consumption loans adequate to religion,” he added.

President of Consumers’ Association Mustapha Zbidi said the interest rate should be banned as the loans will be intended to needy and middle class people.