Algeria hampers new foreign banks investments by suspending licences grant
Following CPA privatization suspended and freezing licenses grant
Monday Apr 14 2008.
A declaration made yesterday by the Minister for Finances Reform, Mrs. Fatiha Mentouri, concerning abrogating or suspending licenses grant for new banks intending operating in Algeria, in view of reorganizing the finances market in Algeria, has raised concerns.
The Minister statement affects the reforms credibility, as the finances situation in Algeria is far from reaching the Mediterranean countries level, either in the services quality, or the coverage rate not exceeding a bank for 30 thousand people. The Algerian finances market estimates have shown that 33 banks are accredited in Algeria.
“The banking system in Algeria, should be more transparent and open, because Algeria is trailing behind some other developing countries,” said the finances expert specialized in banking reforms in North Africa, adding that Algeria decision suspending the CPA bank, is seen as message of the sector’s closeness, while the most important is the speeding up of the banking system reforms which are delaying.
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