Government To Grant Discounts On Investment Loans

Government decided to grant discounts on investment loans, as a new mechanism to bring in new investments in the areas of the south and the high plateaus.

Decision is applied on the loans that signed agreements which are relating thereto from last January.

An executive decree that was signed by the Prime Minister, Abdelmalek Sellal, identified conditions and ways of granting the rate of investment loans’ discounts. 

Decree stated that the discounts that were granted include the completed investment in the higher plateaus and south regions, and systems of supporting job creation. 

It excluded investments that were developed within the framework of the National Agency for Conducting Micro-loan Fund for Unemployment Insurance and the National Agency to Support Youth Employment.

Maximum levels for loans are set 3%, and 5 years for repayment, including the period of postponement, respectively, in the form of levels in the order of eligible activities in view of the priorities and the nature of the granted loan that restricts the financing of reducing the calculated interest by banks and financial institutions, at the appropriate budget’s account.

According to the same decree, companies can benefit from reducing the rate of interest by 3%, with the activities of priority for sectors of industry, agriculture, fishing and tourism, and the same thing for the new digital technologies sector. As for other activities, the decree explained that the decree aims to determine its own interest rate that does not exceed 2%, based on a joint decision between the Finance Minister and the concerned ministers.

Period of reducing the interest rate is identified at five years for loans which duration exceeds 7 and 3 years for loans which duration equals seven years or less it.