APS - 09 February 2020
ALGIERS-The draft Government Action Plan for the implementation of the programme of President of the Republic Abdelmadjid Tebboune provides for the creation of a Housing finding back and a fund for SMEs and startups in 2020, in addition to the deployment of some domestic banks abroad, through the opening of branches.
Thus, the government promises in its draft Action Plan, approved at the last Council of Ministers, a "major banking reform", notably through a wide dissemination of electronic payment instruments to bank customers, with a view to reducing cash transactions.
"Banking and insurance institutions will be encouraged to diversify the supply of financing by boosting the credit market, the generalization of financial products and the development of the bond market. They will be encouraged to deploy the necessary means for broad financial inclusion in order to encourage savings and to dry up the liquidity that thrives outside the banking system and channel it into formal activities," said the document.
Thus, banking and insurance institutions will be supported to encourage financial innovation, the distribution of innovative financial products, including the marketing of securities under alternative financing such as "sukuk" in addition to the development of electronic payment networks.
With regard to stock exchange activity, "particular" attention will be paid to the development of the Algiers stock exchange, which is expected to play an essential role in the financing of companies, as well as the revitalization of capital markets, thus improving the overall efficiency of the financial system and the allocation of financial resources, said the Action Plan.
As for budgetary reform, "budgetary discipline and rigour" will be restored and will ultimately result in better spending performance.
The document also plans to introduce a procedure for monitoring and economic evaluation of any measure involving the State budget, through the generalization of the budgetary information and management system to all ministerial departments under the implementation of the medium-term expenditure framework and the medium-term budgetary framework, two essential tools for the development of a multi-year budgetary trajectory.
In addition, the Government intends to implement a "gradual and comprehensive" reform of subsidies, which currently amount to around 25 per cent of gross domestic product (GDP), by introducing a system for targeting the most vulnerable populations.