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Published on its website to the necessity to hurry the privatization of Algerian public banks, indicating the importance of the success of the operation of privatization of the Algerian Popular Credit and prepare the privatization of two other public banks. He has noticed that the situation of public banks was very hard and needs a coordinate strategy aiming at reduce the role of the State especially that levels of non guarantied credits to be set off is equivalent to 40% and the maintain of credits with inexistent productivity to public institutions is one of the reasons of the fragility of the Algerian banks. The report of the Breton Woodz organism has insisted on many economic indicators after consultations with Algerian responsible among them three ministers who are the minister of Energy, Finances and Labour in addition to the visits carried by delegations from the bank, composed of De Fregar, chief of the mission, and responsibles of the Middle East and Central Asia as Koronchaliane and Vicozrik in addition to Mr. Maharzi, private advisor in Algeria. After the report has indicated that the economy growth in Algeria is very encouraging but the increase of the Gross Domestic product is still modest with 5% in consequence of the slow development of the agricultural sector. The report has indicated that in spite of the decrease of the unemployment rate but its level among young people is still high. Concerning the credits, the report has indicated that the credits non guarantied to be set off in the banking sector of Algeria are mainly in public banking institutions, the rate of non effective and non productive credits is estimated at 40% in counter part the non effective and non productive credits in the private banks are estimated at 4%. While the Fund has indicated that non productive and non effective credits in public banks of dissolved and unstructured public institutions have reached 290 billions of dinars until June 2000. The Fund has indicated that the opening of the Algerian market obliges authorities to hurry proprietary reforms and encourage private investments and create jobs by adopting a coordinate strategy adopting the banking reform at high speed, free the external trade, guarantee the transfer of the currency on ordinary exchanges, ameliorate the business climate and privatise public companies. S. Hafid — El-Khabar | ||||||||||||||||||
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Algeria should make privatization faster