World Bank: Algeria Does Not Need Foreign Loans

Algeria has enough money and does not need foreign loans from the World Bank or any other financial institution, the World Bank vice president for the Middle East and North Africa, Farid Belhadj, said.

The representative of the World Bank, who made a working visit to Algeria from 4 to 7 September, said in an interview with APS: “The World Bank’s commitment to Algeria is not based on the financing of projects. Algeria has sufficient funds and does not need to borrow from the World Bank or any other body. Our commitment to Algeria is a commitment to the level of dialogue and exchange of experiences.”

“We take the Algerian experience and see to what extent it is appropriate and how it can be applied at the level of other countries. We also take the experience of the World Bank through its research and analytical work that we propose to the Algerian side. The matter is related to the real exchange of knowledge and  work through which technical cooperation becomes central to the relationships between the World Bank and Algeria.”

Referring to the outcome of his visit to Algeria, the representative of the World Bank confirmed that his meetings with the Algerian ministers, respectively, the Finance, the Interior and Local Communities and Urban Planning Ministries, the Public Works and Transport Ministry, the Industry and Mines Ministry, and the Governor of the Bank of Algeria as well, and this allows the presentation of the economic situation in Algeria, in its social dimensions and depths, “I have learned from this initial contact that we are facing new Algeria”, Farid Belhadj said.

“We observe developments in the economic situation, developments in the public-private relationship and the growing opportunities of the private sector in the overall assessment of the Algerian economy”, the official said.

“We think that Algeria is moving in the right direction, but as with any transition, it takes time and proactive and swift action to allow the transition to be implemented as efficiently as possible”, he adds.

On the other hand, the representative of the World Bank believes that the diversification of the Algerian economy is very important: “The Algerian economy is based on hydrocarbons today, and it is clear that for Algeria, which we think has a good future, in the next 20 or 30 years, this focus on hydrocarbons is not productive and therefore it requires a change and a diversification, but in fact to extract from this country, which has enormous assets, more innovation and creativity, and this will not be possible through a private sector to ease some of the obstacles that still prevent its development.

In the context of his visit to Algeria, he noted that he was aware of the need to remove the obstacles that are facing the private sector and grant more freedom to contractors and those who have given him a desire to risk in order to promote the institution and achieve sustainable growth.