“Halal” Loans In Investment Files Before End Of The Year
Banks received orders to transfer Islamic banking in Algeria from real estate and consumer loans destined to the acquisition of electrical equipment and cars in a “very limited manner according to abundance” quota, and just opening savings accounts, to offering Islamic products directed to institutions and professionals to start financing new investment projects to be returned before the end of the year and partnership projects between the public and private sectors, the financing of small and medium enterprises and even large enterprises.
Amina Athamnieh, head of the Islamic banking department at the Algerian National Bank, confirms that BNA is preparing new offers that are expected to be ready before the end of the year, especially in terms of Islamic banking.
The latter are approved by the Shariah Board of the Bank, and then the Fatwa and Financial Industry Board of the Supreme Islamic Council, and this is after the issuance of the visa and approval of the Bank of Algeria, as well as the coaching of the bank’s workers and employees regarding these products.
The spokeswoman, who represents the first public bank to launch Islamic banking services in Algeria, says that the Islamic loan and financing services currently directed by the Algerian National Bank include a small share of cars extracted from a local car assembly plant in Oran, real estate loans and even consumer loans for electrical and electronic equipment installed locally. While other operations include the operations of opening savings deposits, a process that witnesses widespread demand on a daily basis – according to the spokeswoman – where several requests are registered daily at this level.
Amina Athamniah confirmed that before the end of the year, the second phase of Islamic financing for institutional investments will be launched, knowing that today’s institutions’ products are limited to 4 products intended for individuals, and one product for institutions.
The Supreme Islamic Council, through the Fatwa Authority for the Financial Industry, seeks to find new ways and outlets to be able to finance institutional investments during 2022 through Islamic banking, or by charging savings and resources and adopting formulas for professionals, and this proposal is in line with the instructions of the Prime Minister and Minister of Finance Aimene Benabderahmane, who ordered the adoption of Islamic banking in the investments of small and medium enterprises and even large enterprises.
The Supreme Islamic Council, accompanied by a committee at the level of the Ministry of Finance, is studying how to pump Islamic banking funds into investments in housing, air and sea transport, and public works, without resorting to the savings of classic banks, to be able to guarantee the legitimacy of this financing, as the results of the work of this committee are expected soon.
The latest statistics issued last September, indicate that Islamic banking in Algeria has enabled, since its launch, the opening of 15,000 new bank accounts, and the pumping of an amount of 10 billion dinars – that is, 1,000 billion centimes – knowing that the banks are expected to disclose the proceeds of Islamic banking after next December 31st 2021.