Algeria : Credit rating system "almost ready" for the return of consumer credit
The Bank of Algeria is to establish a credit rating system to support the return in 2015 of consumer credit for locally produced goods.The Bank of Algeria is to establish a credit rating system to support the return in 2015 of consumer credit for locally produced
Abderahmane Benkhalfa, independent economic consultant and former delegate of the Association of Banks and Financial Institutions (Abef), told the newspaper La Tribune that the system is almost ready, adding that it "doesn't have to be operational on the first day", but it is essential that it is "in the early months of 2015 to be able to control debt".
The reintroduction of consumer credit has been established by the Finance Act 2015. Mr Benkhalfa said this operation, although beneficial to the economy, is difficult to implement because credit is only available to purchase goods produced in Algeria.
He explained that banks are waiting for a regulatory mechanism to know the list of products that can be financed by consumer credit.
The Algerian government had decided to abolish consumer credit in 2009 after the country was hit by the global economic crisis.