Economic experts call for a genuine partnership of banks in the financing of the projects
Algiers, Algeria– The economist Abdelmadjid Kadi has called on the Algerian authorities to involve banks and financial institutions in financing the projects initiated by the youngsters as part of the latest measures endorsed by the cabinet.
- This procedure, according to the expert, will guarantee the recovery of the loans granted by the government to the young entrepreneurs instead of keeping the 1% interest rate that the authorities think will force these youngsters to comply with their commitments.
- In a declaration to “Echourok”, Abdelmadjid Kadi considers the idea of the creation of the so called “Islamic one-stop shops” at the level of the banks would contribute in an effective way to finance the projects and include the young reluctant entrepreneurs who boycott the banks for religious constraints.
- The expert has indicated that the best way to lift up these hurdles consists in the creation of investment banks entrusted with assisting and financing the projects started up by the youngsters, noting that these banks will, in this case guarantee the recovery of their loans and register significant benefits in return.
- For his part , the economic expert Abdelhak Laameri has revealed to “ Echourouk” that public and private banks need to review their hole financing policy wit the aim to make them fit the economic standards and transform them to investment banks at more than 70% .
- M Laameri has further asserted that 10% only of the banks ‘ financial resources are dedicated to the financing of the projects, while the biggest part serves to finance bankrupt public companies. This strategy, he added, proved its failure to solve the problem of unemployment in Algeria.