IMF Warns Algeria Of The Fruitless Loans, Slowing Growth

Algeria’s banking sector remains well-capitalized despite the low oil prices, highlighting the financial sector’s resilience to the oil shock, International Monetary Fund said.

In its seminal report on the economic prospects of the Middle East, North Africa, Afghanistan and Pakistan, the IMF presented in Dubai, the International Monetary Fund (IMF) confirmed that Algeria is maintaining the financial resilience before the collapse of oil prices and good resistance to the banking sector.

“The banks in the GCC region and in Algeria are well capitalized with private equity allocations that usually outweigh the legal minimum and are profitable”, the IMF said in its report on Tuesday.

However, the Bretton Woods foundation warned countries in the region of the fruitless loans and the risk of assets’ deterioration.

Addressing the enhanced of liquidity management arrangements and prudent policy frameworks, the International Monetary Fund (IMF) cited an example of the re-inclusion of refinancing instruments in Algeria.

Growth in Algeria in 2017, according to the International Monetary Fund (IMF), will slow by 5.1%, falling in 2018 to 0.8%, due to the projected reduction in public spending before rising to 4.2% in 2022. 

“Government is formulating a broad strategy for changing the country’s economic pattern and its focus on the growing support for the private sector”.

“The role of the private sector in Algeria is still growing thanks to the development of public and private partnerships”.

“With regard to the budget, Algeria announced ambitious clean-up programs even if it can choose a more gradual adjustment in the short term to reduce negative impacts On growth “.