New leasing company to be created in Algeria
Algerian bank BEA and Portuguese bank BES have signed a partnership to create a new leasing company in Algeria.Algerian bank BEA and Portuguese bank BES have signed a partnership to create a new leasing company in Algeria.
With an initial capital of 3.5 billion Dinars (€35.7 million), its objective is to develop a local financial market to improve and encourage access to finance for any small and medium-sized enterprise (SME) attracted to the flexibility of leasing, Chief Executive Officer of BEA Mohamed Loukal told APS news agency.
It will offer SMEs "financial alternatives adapted to the different situations for each company, not only with a commercial aim but with a notion of public service", he said.
Within two years the banks hope to reach a volume of financing by leasing up to four times the amount of initial capital.
The Algerian government has recently introduced several measures to create public leasing companies and wishes to promote this finance product to improve access to credit for SMEs.
In Algeria, Société de Refinancement Hypothécaire and Société Nationale de Leasing (SNL), have offered several leasing options since April 2011.
Between April 1st and the end of August, SNL accepted 27 leasing applications from SMEs, with a total value of €6.7 million, SNL's director Mohamed Krim told Ecofin news agency.