Eleven billion dinars of “halal” loans earmarked for Algerians and 6,600 billion dinars for investors

Al-Baraka Bank Marketing Director, Mr. Said Karim, revealed the distribution of “halal” loans equivalent to 11 billion centimes in Dinars for the benefit of the Algerians by the bank he represents, while sixty percent of them had been earmarked for investment, or the equivalent of 6,600 billion centimes (DA), until the end of 2016.

This has prompted the Al Baraka bank to hike its capital up to 1,500 billion centimes (DA), after it was equivalent to 1,000 billion centimes (DA) last year.

On the other hand, the spokesman pointed out that the bank’s capital raising operations will continue gradually during the next phase to finance economic activities in Algeria primarily with Halal or “Shariah-based compliant” mechanisms.

The spokesman confirmed in a statement to “Echorouk” that the Board of Loan and Cash approved to scale up  the bank’s capital  from 1,000 billion centimes (DA) to 1,500 billion (DA), thus making the bank, which represents the largest contributors to the financing of investments and economic activities in Algeria during the next phase.

He also referred to the launching free of charge of 5 million new shares with a par value of 1,000 dinars per share for the shareholders, namely from Al Baraka Banking Group with a capital of $ 1.5 billion in Bahrain and from the Bank of Agriculture and Rural Development with a capital of 54 billion in Algerian dinars.

According to the bank’s statement, the bank’s capital raising process, which included the profits in the reserve accounts, translates the shareholders’ intention to increase the bank’s cash ability in order to contribute more in financing the country’s economic fabric. 

According to the statement, these increases will continue in the coming years in accordance with the strategic plan approved by the Board of Directors, which allowed the Bank to record significant growth in line with the aspirations of the shareholders and the various partners in general whose overall number has now reached 384 thousand and 436 customers.

Deposits up to December 31, 2016 amounted to 170 billion dinars, an annual increase of 12 percent. Meanwhile, customers’ funds increased to 110 billion dinars at the end of 2016, registering an annual growth rate of 21.5 percent thus translating the Bank’s policy geared to shoring up the productive sector involving the country’s economic institutions.

Al Baraka Bank is considered to be one of the most important liquidities banks in the national banking arena. The Bank’s operations are in accordance with Shari’a or Islamic law precepts and principles.