Sonatrach owes $11 billion to the “government”

Money that Sonatrach owes to the Public Treasury reached 1,200 billion DZ (about $11 billion). Algeria’s Prime Minister Ahmed Ouyahia believes that the debt should be transferred via a mutual agreement.

Ouyahia defended the government’s action plan, saying borrowing money from the Bank of Algeria is not a choice but an obligation.

The action plan included a new form of non-conventional funding. Ouyahia said economic enterprises owe very large sums to the State.

As a Secretary General of RND party, Ouyahia submitted a proposition to members of Parliament to transfer the money that some important economic enterprises including Sonatrach owe to the Public Treasury.

He said the sum of 1,200 billion DZ is important to Sonatrach as it needs it to fund its investment in exploration and raising hydrocarbon products.   

He added that Sonatarch’s profits represent a big importance in the State’s financial balances as they are included in the Algerian exchange reserves. 

“Sonatrach’s incomes constitute an important part of the Public Treasury’s revenues,” said Ouyahia in his letter to members of Parliament.

Sonatrach is one of the strategic companies which owe money to the State along with Air Algerie. Its net profits reached 207 billion DZ last year. It paid $15,853 billion to the Public Treasury. Figures show that its annual sales were estimated at $29.904 billion in 2016.