ALGIERS-The Governor of the Bank of Algeria Mohamed Loukal said Sunday in Algiers that the amount outstanding bank credits reached DZD 8,000 billion in 2016, stressing that unsuccessful credits have been continuously declining for many years thanks to the credit monitoring mechanism adopted by banks.
Loukal stated 74% of these credits are short-term and medium-term designed for investment and employment, adding the granted credits are successful but they need some years to be profitable.
The Governor of the Bank of Algeria made these statements in plenary session of the People’s National Army (Lower House of Parliament) devoted to questions of MPs on the country’s economic and financial balance at the end of September 2016.
“When we ask questions about credits, we must understand that a project needs some years to be profitable and have an impact on the economy. Personally, I led the greatest bank in Algeria, namely the External Bank of Algeria (BEA) for 11 years, and I can say that the granted credits are meant to investment and diversification of the national economy,” he added.
As regards Chariaa-based banking services advocated by some MPs, Loukal said the banking regulation does not oppose to such products, arguing that at least two bank provide these services since many years.
Besides, the Governor said “our non-hydrocarbon exports are low and unfortunately, we cannot increase them in 24 hours,” stressing “restructuration, new laws and budget consolidation and the new economic medal are reforms that need time.”
Source: Outstanding bank credits worth DZD 8,000 billion in late 2016
