External debt reduced to $ 402 million

External public debt of Algeria now stands at four hundred and two (402) million, a figure supplied by Ami Baba, Director General of the Treasury, on the sidelines of the signing ceremony of an agreement between the Algerian Institute of Financial Studies (Iahef) and the Institute of Development Finance Maghreb (IFID).
In 2008, she was around six hundred million dollars.
External debt of Algeria had abysmal proportions in the early ninety. It weighed so much on the balance of the national economy that the rescheduling decision had been taken, and committed to the support of an agreement that Algeria was signed in 1994, with the International Monetary Fund. In early 2000, a part of the external debt was converted into investment securities. Agreements have been concluded to this effect with France, Italy, Spain and Poland, among others.
In 2005, when the first negotiations began around the new formula for debt management: payment in advance.
A sum of agreements has been signed with the member countries of the Paris Club. The redemption allowed the country to the margin in the management of the resource. With the recovery of oil markets, foreign exchange reserves have grown thickness, development projects, particularly in infrastructure, have been initiated, the country became attractive with guarantees, with a good mattress currencies. It is the same approach by the IMF for loans. Does this mean
that everything was up to standard. All is not set, the slope of inflation grows and the budget deficit grows.
The country could register a double-digit inflation, while the budget deficit stood at 1300 billion dinars in the first half of 2012. The government was counting in the Supplementary Budget Law 2012 on a deficit of 4116 billion dinars, compounded by the operating expenditures are expected to increase from 317 billion dinars.
However, the executive tries to mitigate these data, highlighting a downtrend deficits in recent years, a trend less than that established by the Government in the laws of finance, a few years ago.
The reason is that the funds allocated by the state are absorbed significantly by the government.
The uptake of appropriations has led to debates in recent years, and a budget bill was submitted to Parliament for an effective management of state money.
Banks, in addition to excess liquidity, now have enough money. Better, some of them do not know what to do.
An enviable position? Maybe some regional banks of similar size banks Algerian dream? Some banks from neighboring countries are now seeking a way out, in a context or Arab Maghreb difficult as a result of the Arab Spring.The Maghreb by the bank, is it possible in this situation? The Union Bank of Maghrebian, a structure that attempts to give consistency to financial cooperation between Maghreb countries, was present at the signing ceremony of the agreement mentioned above and its representatives have emphasized the need to strengthen that exists as the foundation for cooperation between financial institutions. And the agreement between the Algerian Institute of Advanced Studies and the Institute of Financial Development Finance Maghreb fits into this framework. This is an important partnership saw the growing needs of the financial sector in Algeria, which reflects the importance of our country’s investment in human resource development, welcomed Baba Ami. Especially the Convention should provide “more instead Algerian banking particularly in support of banking and implementation of prudential rules” is, in turn, welcomed the new president of the Association Algerian banks and financial institutions (Abef) and Chairman and CEO of Badr, Boualem Djebbar.
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