Algerian government boosts consumer credit
This decision was taken to reduce the country's import bill.The Algerian government has promulgated a decree to revive consumer credit.
According to newspaper La Tribune, the decision was taken to reduce the country's import bill which has grown rapidly to nearly $60 billion in 2014.
"Bank loans - granted as consumer credit - will finance the whole amount of the national product purchased by the borrower and will include non-subsidised interest rates," said the director of regulatory and legal affairs at the Ministry of Commerce, El Hadi Bakir, quoted by the APS news agency.
Banking institutions will have "complete freedom" in granting the loan that can amount to 100 per cent of the product, the official said, adding that banks will develop instruments to check whether the borrower has sufficient repayment capacity.
The decree also states that the total monthly amount of repayment of the loan taken by the borrower shall in no case exceed 30 per cent of net monthly income received regularly, in order to prevent over-indebtedness.
All goods manufactured or assembled in Algeria are included in this new provision.