Finance Minister Ben Khalfa: “Idea of Opening Algerian Banks’ Branches abroad is excluded”

Finance Minister, Abderrahmane Ben Khelfa, excluded the idea of opening branches of Algerian public banks abroad, considering it difficult on the ground, especially in light of the current data of the banking sector.

“Development of offers of public banks’ products that are directed for the national community abroad, especially the mortgages and other products, in a time when our services are continuing to study the possibility of reviewing the current value of the grant to travel abroad, as a way to crack down on the parallel market of the currency, which is responsible for the deterioration of the national currency.”

The minister responded, on Wednesday, in a written question to the Deputy of the National People’s Council – on the possibility of opening branches of the Algerian banks abroad, which would provide savings and investment opportunities for the national community abroad, and contribute to the development of national economy – that this situation needs the completion of the ongoing banking reforms process.”

In the same response, Ben Khalfa said, without giving due for the aspects that should be provided for the adoption of the Algerian public banks’ branches abroad, that the reforms are considered as “necessary condition” to allow the public banks to live up to international standards, above all, what could thus become “more willing” to expand into overseas investment successfully, in an implicit recognition of the existing financial and banking affairs of Algeria, that the national banks’ transactions do not live up to international standards.

“Opening-up project abroad requires the banks to seek control of the steering and new financing instruments”, considering it a “prior and necessary” condition, and this is not available in public banks.