Exploitation Loans In Two Weeks And Investment Loans in 25 Days!

Public banks hiked the pace of studying loan files rapidly, and reduced the deadlines for responding to customers from one month to 15 days for exploitation loans and 25 days for investment loans, while the latter awaits the issuance of a decree clarifying how to deal with institutions affected by the Corona virus pandemic, after the expiry of the concessions granted on date March 31 last.

A source from the Algerian National Bank revealed that the deadlines for studying loan files had been reduced to 15 days for exploitation loans, and between 21 and 25 days for investment loans, with the programming of one meeting every week during the month of Ramadhan to study requests and two meetings outside the month of Ramadan, so as to prepare for the launch of new formulas for Islamic financing for investment and exploitation.

The sources stated that preparations are being made to launch new Islamic finances for investors, the first relating to investment “murabaha”, to major dealers and investors, without specifying a precise ceiling for the size of the funds, while the second finances are linked to the investment “murabaha”, which is short-term financing ranging from 6 to 24 months, and this coincides with the bank seeking to launch specialized Islamic agencies, in addition to the two separate agencies that were previously launched last year and the current year, and 64 Islamic banking windows.

The Algerian National Bank prefers the policy of opening Islamic banking agencies instead of windows, to gain the customer’s confidence and work more comfortably, knowing that the Algerian National Bank was able to collect savings according to the Islamic banking formula, which reached the end of last March 1,030 billion centimes, and 18 thousand and 400 bank accounts, and the financing amounted to 180 Billion centimes, which were consumer and real estate loans and rental equipment.

These figures come at a time when the Algerian External Bank revealed that it hoarded 60 billion centimes in a span of 90 days through Islamic banking, that is, until the end of last March, with preparations to activate investment products, especially as the government is preparing to launch a new investment law and has launched a campaign to lift the freeze on pending projects which need exploitation funds.

On the other hand, the National Fund for Savings and Reserves managed last year to open 3,393 Sharia-compliant accounts and received 170 files for financing, with preparations for launching new services related to depositing in the investment account.

On March 31, the deadlines for special procedures for escorting institutions affected by Corona virus ended, according to the decree issued last March. It has declined sharply, as a result of the epidemic’s contraction and the almost disappearance of its effects.

To this effect, the decree signed by Prime Minister Ayman Benabderahmane had previously confirmed the amendment of the provisions of Article 5 of Executive Decree 20-239, extending the validity of the provisions of this decree until March 31, 2022.
The provisions of this decree apply to loans granted by banks and financial institutions for the benefit of private institutions for financing investment projects and real estate developers who contribute to the implementation of public programs for housing and private individuals for the acquisition of social housing and the construction of rural housing, as well as individual housing completed in the form of a complex in specific areas in the provinces of the south, the high plateaus.