Laaziz Fayed: Bank Interest On Investment Loans To Be Reduced Soon

Algeria achieved an economic growth rate of 4.1% in 2023, the Minister of Finance, Laaziz Fayed, announced on Saturday highlighting that achieving this rate is due to the solid performance of several national economic sectors.

Fayed explained, during a press conference held at the Ministry of Finance, entitled “Outcomes of the 2024 Spring Meetings of the World Bank Group and the International Monetary Fund and Related Economic Issues,” in which he participated last week in Washington (United States of America) at the head of a delegation from his ministerial department, that “the Algerian economy witnessed a growth of 4.1% in 2023, that is, almost the same estimates expected by the International Monetary Fund.”

Fayed added that achieving this growth is due to the solid performance of several national economic sectors, noting also the positive indicators achieved “thanks to the efforts made by the public authorities.”

In this context, he reported that the balance of payments achieved a surplus of $6.53 billion in 2023, in addition to recording an increase in the exchange reserve from $61 billion in 2022 to $69 billion in 2023, representing 16 months of imports.

The Minister of Finance also announced that banks will soon reduce interest rates on investment loans in the next few days, contributing to financing the national economy and enhancing investment.

The minister added that this reduction will also have “a direct impact on inflation, which will decline, in parallel with reducing the cost of investment.”

In this regard, Fayed highlighted the contribution of the national financial institutions, especially banks, in financing economic activity, stressing that the National Investment Fund, for example, contributed DZD 500 billion between 2023 and 2024 in financing railway and mining projects, especially the Ghara Djebilat mine project and the integrated phosphate project.

The Minister explained that the value of loans directed to the economy by banking institutions is estimated at DZD 10.750 billion.

In the same context, Fayed also spoke about the ongoing reform program in the banking sector, especially in digitization, which affected various structures and facilities of the financial industry to dematerialize transactions.

He specifically mentioned the Directorates of National Taxes and Property and the General Directorate of Customs, which was praised by the two Bretton Woods bodies during their meetings held between April 15 and 20, in which the Minister of Finance participated.

The Minister of Finance also confirmed that the value of Algeria’s GPD amounts to DZD 32.000 billion, highlighting that investment activity and positive economic indicators of the national economy will allow it to reach, or even exceed, $400 billion in GPD in the next few years.

“Algeria is currently ranked third in Africa in terms of GPD, and with national and foreign investments, and the appropriate environment for investment that has been provided, the GPD will rise, and even exceed $400 billion, as previously confirmed by the President of the Republic, Abdelmadjid Tebboune”, Minister Lazziz Fayed added.

Fayed also stated, in this regard, that the Algerian economy “enjoys great capabilities that will be exploited,” allowing the economic take-off to be strengthened.