Africa Financial Sector Responses to COVID-19 - Algeria

Instrument

Institution

Financing volume

Description

Monetary Policy actions

Central bank of Algeria

N/A

(April 29, 2020) Regulatory and monetary policy measures to amend the minimum reserve system, the key interest rate for bank refinancing and the terms and conditions of open market operations:
* Fixing of the minimum reserve ratio at 6% of the reserve base;
* The key interest rate for the main refinancing operations is set at 3% instead of 3.25%;
* Refinancing of banks by the Bank of Algeria on the basis of the new thresholds.

Tax and customs measures in support of the private sector

Government

N/A

(April 16, 2020) Government support measures put in place:
Tax measures:
* Deferral of tax filing and payment of taxes;
* Suspension of taxation of unappropriated profits.
 Customs measures:
* Imports of food products and medical devices used in the prevention and control of the effects of COVID-19 benefit from an accelerated customs clearance procedure.
Measures relating to social security contributions:
* Suspension of the increase of the previous late penalties for social security contributions.

Tax Relief and Government Incentives

Government / Exchange Office

N/A

(April 16, 2020) Easing of import conditions:
New possibility for banks to receive documentation related to import operations electronically, with a quick confirmation from the bank sending the documents for the completion of all bank and customs formalities related to imports.

Employers' measures to support the banking sector

Professional Association of Banks and Financial Institutions

N/A

(April 08, 2020) New employer measures objectives:
* The extension and/or renewal of the maturities of loans due on March 31, 2020 and beyond;
* The rescheduling of debts due on March 31 and beyond;
* The extension of the period of use of loans and deferred payments;
* The removal of penalties for late payment of debts due on or after 31 March 2020;
* The maintenance and/or renewal of operating loans.

Regulatory measures

Central bank of Algeria

N/A

(April 06, 2020) Exceptional measures aimed at easing certain prudential provisions applicable to banks and financial institutions, relating to liquidity, capital and debt classification:
* Lowering of the minimum threshold of the liquidity ratio to 60%;
* Exemption from the obligation to build up a safety net in relation to the solvency ratios applicable to banks and financial institutions;
* Possibility for banks to defer the payment of maturing segments of loans and to reschedule customer loans;
* Possibility for banks and financial institutions to grant new loans to customers who have benefited from the above mentioned deferral or rescheduling measures;
* Obligation for banks and financial institutions to keep detailed records of the measures taken under this regulatory instruction.

Government measures in favor of the private sector

National Tax Administration

N/A

(April 04, 2020) Accompanying measures in favor of the private sector:
* Exceptional deadline extension for the subscription of annual income tax returns and income tax returns, in order to facilitate the fulfilment of companies' tax obligations;
* Possibility for requesting a schedule of payment of tax debts for taxpayers in financial difficulty;
* Suspension of taxation of profits not allocated in previous tax years.