Algerian employers call for bank dedicated to SME financing
Despite the government efforts, Algerian small to medium-sized enterprises (SMEs) are still facing difficulties accessing credit because they cannot provide the guarantees required by lenders, according to Algerian employers.Despite the government efforts, Algerian small to medium-sized enterprises (SMEs) are still facing difficulties accessing credit because they cannot provide the guarantees required by lenders, according to Algerian employers.
"Measures taken over the last few years by the authorities, through the creation of guaranty funds for SME financing, did not have the expected results. SMEs keep highlighting that the question of access to credit is still a major issue for them," states a document from the employment union FEC published by Ecofin news agency.
In order to ease SME's access to credit in Algeria, the union called for the creation of banking institutions dedicated to SME financing.
It asked the Algerian state to create a specialised investment bank with a capital of $10 billion (€7.4 billion), open to private and institutional shareholding and possibly foreign investors.
The FEC also called for the strengthening of existing support services for SME financing as well as the creation of several specialised banks, as there is not a single bank currently dedicated to SME financing in Algeria.
A few months earlier, the Organising and Monitoring Securities Commission, with support from the United Nations Development Programme, announced measures will be introduced to modernise and boost the Algerian stock market and increase access to finance for businesses.
Mustapha Ferfera, Director of the Alger stock exchange, told La Tribune newspaper that requirements to enter the stock market will be relaxed for SMEs, with the creation a dedicated structure for these companies, which will be operational in 2012.