Algeria-IMF

Mr Djoudi is counting on 3.9% growth for 2009 in Algeria

The Algerian economy should achieve positive growth of 3.9% in 2009, stated, in Istanbul, the Minister of Finance, Karim Djoudi. “For 2009, we expect growth of 3.9% which would be drawn mostly by the growth excluding hydrocarbons of over 6%”, indicated Mr Djoudi to the APS on the fringes of the works of the Development Committee of the World Bank and the International Monetary Fund (IMF). This forecast supports the estimates made recently by an IMF report which forecast positive growth rate for Algeria of +2.1% in 2009 and + 3.7% in 2010. “In growth in hydrocarbons, we will see a reduction in activity, or even negative growth”, according to the Minister, adding that for growth excluding hydrocarbons, this will be drawn by the performances which should be made in industry, services, agriculture and buildings and public works. Commenting on the IMF forecasts on Algeria’s growth, the Minister emphasized that “this institution feels that Algeria is growing whereas the world is stopping growing”. Mr Djoudi further emphasized that the country’s approach in terms of economic reforms has not caused great concerns in its partners but discussions in view of explaining the approach undertaken by the public authorities. Further, great interest has been shown by France’s second largest bank (BPCE), combining the banques populaires and caisses d’épargne to develop in Algeria on the property loan, SME financing and project management assistance segments, he added. “This type of partners have already incorporated in their future projects the actions which we have undertaken within the framework of the Complementary Finance Law 2009″, revealed Mr Djoudi. Questioned on the potential purchase by Algeria of bonds which the IMF will issue to bail out its funds, the country’s Treasurer replied that this question is “still being looked into”. Indeed, he explained “we are very pragmatic on this question. What governs our foreign exchange reserves management are security and liquidity. If our assets are secured and if we can withdraw them at any time, we can work with these institutions”. The IMF request to Algeria to buy its bonds “simply means that Algeria is recognized as a net lending country from the rest of the world and in which certain performance in the conduct of its economic affairs is recognized”, he maintained.

To a question relating to the use of inspection companies before dispatching such as provided for by the Complementary Finance Law 2009, the Minister specified that large shipping companies have shown their interest in working with the Algerian Customs services.

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