700,000 new projects and facilities benefited, including rescheduling loans:
father-in-law
Expressiveness
Total exemption from interest and late fees in exchange for paying the principal
Allocating 140 thousand billion to youth institutions since the introduction of the devices
Official clarifications addressed by Minister of Finance Mohamed Lamin Labou to Member of the National Assembly, Kamal Khalifati, revealed that public banks have financed more than 700,000 projects since the establishment of business support agencies, with a total financial cover exceeding 1,400 billion dinars, or 140,000 billion, at a time when a significant percentage of the loans granted are still facing difficulties in repayment, which has prompted banks to tighten the standards for studying files and focus on the economic and financial feasibility of projects before granting financing.
According to the response regarding the measures intended to be taken to simplify the process of obtaining bank financing for small and medium-sized enterprises, and the mechanisms adopted to evaluate the performance of banks in this field, public banking institutions continue to play their role in financing small projects and accompanying young project owners, especially through public support agencies, such as the National Agency for Entrepreneurship Support and Development “NASDA”, formerly known as “ANSAJ”, the National Unemployment Insurance Fund “CANAC”, and the National Agency for Microcredit Management “ANJAM”.
The response explained that the accumulated experience in financing projects has created a situation that requires achieving a balance between encouraging entrepreneurial initiative and preserving bank resources, given that a significant percentage of the loans granted are still in non-payment status, which has made banks attach greater importance to studying the extent of projects’ viability, the qualifications and competencies of their owners, and their ability to ensure the continuity of their activities.
The same clarifications stressed that the role of banks should not be limited to providing financing, but should also include evaluating the economic feasibility of projects, in order to avoid a return to the intensive financing practices that characterized some previous periods, while continuing to accompany project holders within the framework of an approach that combines investment encouragement and ensuring the safety of financing.
Interest exemptions and loan rescheduling over 5 years
In the context of addressing the debt of small projects, the response indicated that several mechanisms have been put in place in recent years to settle the situation of the beneficiaries of the financing, including measures approved during the year 2026, which allow, in accordance with the applicable conditions, the total exemption from interest and late fees in exchange for full payment of the principal of the debt. The measures also include the possibility of rescheduling loans over a period of five years, while maintaining the benefit from reduced interest rates, according to specific conditions, especially those related to the availability of equipment.
According to the same source, micro-enterprise support agencies benefit from significant financial support from the state, through the public treasury bearing the costs of reducing interest rates, as well as interest-free loans directed to project owners, based on the financial appropriations registered in the state budget for the benefit of the ministry in charge of micro-enterprises.
A fund for emerging enterprises that relies on investments, not loans
Regarding financing emerging enterprises and innovative projects, the response highlighted the role played by the Algerian Fund for Emerging Enterprises (ASF), as a venture capital company owned by six public banks, and aims to accompany emerging enterprises that have proven growth potential and promising prospects for development and expansion. The source explained that the Fund’s method of intervention differs from traditional bank financing, as it is not based on granting loans that entail repayment obligations, but rather relies on taking contributions to the capital of the beneficiary enterprises, with the aim of contributing to their development and sharing the risks associated with their activity.
In selecting projects, the Fund relies on investment criteria that include growth potential, economic model, and profitability prospects, through internal bodies and procedures dedicated to analyzing, selecting, and following up investments.
The evaluation of the projects presented to it is up to the competent bodies affiliated with the Fund, as it is a venture capital company that practices its activity in accordance with the rules of governance and approved investment procedures, and within the framework of respect for applicable legislation and regulation.
11.256 billion dinars, the volume of loans directed to the economy by the end of 2024
At the level of financing the national economy, the presented data revealed that public banks occupy a pivotal position in financing public and private institutions and productive investment, as loans directed to the economy, granted by the banking sector, recorded a growth of 5.3 percent by the end of 2024.
The total balance of these loans amounted to 11,256.5 billion dinars, compared to 10,694.9 billion dinars at the end of 2023, which reflects the size of the banking sector’s contribution to financing economic activity and accompanying economic institutions and dealers.
In the context of improving conditions for obtaining financing, the Guardian Ministry recently issued directives to public banks aimed at enhancing their contribution to financing the economy, by expanding the scope of decentralization in loan granting decisions and reducing the deadlines for studying and processing files.
These directives also include improving the offer of banking services and diversifying financing products, in addition to improving customer reception conditions and improving the quality of services provided, allowing banks to be more responsive to the needs of institutions and economic clients, without abandoning the accurate assessment of the risks associated with financing.
Reducing the deadlines for processing files and following up on banks’ performance
With regard to evaluating the performance of banks in the field of financing small and medium enterprises, the response stressed that improving opportunities for obtaining loans is not limited to issuing directives, but rather requires monitoring the extent of their implementation and measuring their results on the ground.
Evaluation indicators mainly include the deadlines for processing loan applications, conditions for obtaining financing, and the volume of loans directed to institutions, as well as the quality of accompaniment provided to project owners. The directives directed to public banks also aim to enhance their operational effectiveness and strengthen their contribution to financing productive investment, provided that monitoring their implementation allows determining the level of progress achieved, and monitoring the obstacles that still limit institutions’ benefit from bank financing.
These measures, according to official clarifications, fall within the efforts of public authorities to achieve a balance between facilitating access to financing and ensuring the economic feasibility of the funded projects, while maintaining the strength of the banking system, through integration between bank loans and public support mechanisms directed to youth, and investment capital tools designated for emerging institutions and innovative projects.
