Algeria News & Events, Latest News for Algeria

Update: Monday, 14 April 2008    

1000 billion dinars frozen in state-owned banks

Algeria Bank to accredit 7 foreign banks
Monday Jun 25 2007.

Not exploited money cash in state-owned banks reached around 1000 billion dinars, according to a financial source estimations.

The source further considers that these huge amounts are frozen because of the lack of mature projects.

While public authorities insist on breakthroughs banking reform went through, the reality is that banking sector in Algeria still suffers from bureaucratic considerations undermining state-owned banks activity. This fact explains the surplus in monetary cash in spite of Algeria Bank efforts meant to absorb it. However, funds earmarked to investments are estimated at only 10%, yet, state-owned banks deposit their funds in Algeria Bank for a lower interest rate.

This situation owes much to the absence of projects likely not to endanger banks financial balance. On another side, the same source revealed that Algeria Bank is examining seven folios for the accreditation of foreign banks including Lebanese, Tunisian, and Moroccan ones.

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