Algeria : Leasing company to launch €19.5 million bond
The move is expected to improve SMEs' access to credit.Maghreb Leasing Algeria is to issue a two billion dinars (€19.5 million) five-year bond, according to APS news agency.
It has obtained the approval of the Commission for the organisation and supervision of stock exchange transactions (COSOB).
The bond should help develop Algeria's financial market, which is not highly developed, according to the managing director of the Association of Banks and Financial Institutions (Abef) Abderrazak Trabelsi, quoted by the newspaper La Tribune.
He believes that it is necessary to accelerate its development so that the public investment effort is gradually taken over by this market.
The Algerian government has been asked by the Algerian President Abdelaziz Bouteflika to implement measures to boost the financial sector in order to contribute to the development of businesses, especially small and medium-sized enterprises (SMEs), while mobilising local savings and investment financing in the economic sphere.
While SMEs represent more than 95 per cent of companies in Algeria, at least half of that number struggle to gain access to banking services, denying them the opportunity to help the economy grow, according to the World Bank.