Government repeals the cars loans and encourages the housing

Government decided to prevent consumer loans and limit the loans granted by banks and financial institutions operating in Algeria on only the real estate loans, under the new procedures designed to support the housing sector and facilitating access to mortgage loans and payment of car manufacturers to invest locally, and this year after the adoption of a new tax on the new cars.

• Head of the association of cars agents, Mohamed Bairi, described the decision to lift the consumer loans, as provided for under the article 75 of the Finance Act supplementary, as a sudden decision.
• “This step would negatively affect the activity of cars agents who were partly affected last year because of inclusion of a new levy on the new cars”.
• Article 75 of the complementary Finance Act published in the last number of the official Gazette, announced “Banks are not authorized to grant loans to individuals only in the context of real estates loans”.   
• The economist Abderrahmane Mebtoul said government has the right to review the policy of loans and banks work in the financial arena, however the real problem in Algeria is the absence of a national production in many sectors.
• “The national production must be supported before taking such decision. The agents are the first victim as well as the banks that have the large part of consumer loans, then the Algerian families which resorted to the banks support”.