Jan Walliser: “We Never Pressurize Algeria To Cancel Investment Base 49-51

Algerian government should adopt more austerity measures during the next phase, and not just confront the oil crisis with analysis and criticism, World Bank Vice President, Jan Walliser, said in response to Echorouk question about the financial situation in Algeria.

“Your government should tighten the belt, and even adopt austerity procedures and stop electricity and fuel subsidies”.

Representative of Bretton Woods added that Algeria’s financial situation requires to stop the policy of “Social aid” that government pursued since years ago, through a review of the policy of supporting the consumer-oriented products, like fuel and electricity primarily, and also ease the expenses.

“Investment climate in Algeria noticed a marked improvement over the past months, based on the efforts of the government at every time, and the investment base 51-49 does not pose any burden on foreign investment in Algeria, unlike the critics and reports against it, which are released by the World Bank”.

“Base 51-49 falls within the powers and freedom of the Algerian authorities, which has the right to protect its investments as it deems appropriate, and the World Bank did not force Algeria to cancel this action”.

H went even further when he said: “Algeria is not the only country that adopted this procedure, many nations control the rate of investment, and this does not affect the business climate”.

He advised the Algerian government to borrow funds from abroad, saying that Algeria has no debts, which gives it larger opportunities to borrow money from abroad, and if will resort to this option, it will also gain large opportunities for financing its projects in hard currency.