President Bouteflika hosts IMF Director General Christine Lagarde

Algérie Presse Service (APS) - March 13, 2013

The president of the Republic, Mr. Abdelaziz Bouteflika, hosted yesterday Mrs. Christine Lagarde, Director General of the International Monetary Fund (IMF), who arrived in Algiers for a three-day official visit.

After her meeting with the president, Mrs. Lagarde declared that "The Algerian economy is on the good track and it can achieve developments which will arrive on due time."

She explained that Algeria's macroeconomic fundamentals, which include economic growth and control of public debt, "are extraordinarily weak", adding that the country's management of public accounts as well as the "encouraging" employment data "allow us to think that the Algerian economy is on the good track."

Responding to a question relating to the reason for her visit, Mrs. Lagarde said that the IMF wants to pursue its "fruitful" partnership with Algeria.

"Algeria has always been a partner of the IMF in difficult times as well as in more serene economic times," she said.

She added that her talks with President Bouteflika covered "macroeconomic issues relating to the development and future prospects of the Algerian economy" and added that their discussions "were expanded to include the countries of the Maghreb region."

Algeria asked to help increase IMF financial capabilities

Algérie Presse Service (APS) – April 23, 2012

Speaking on the margins of the World Bank Group Spring Meeting, Minister of Finance Karim Djoudi indicated that the International Monetary Fund (IMF) has requested Algeria's help in increasing the Fund's lending capabilities. Mr. Djoudi said that "the request was made by the IMF to Algeria as a country endowed with financial surpluses" and that Algeria "is going to review and assess the conditions under which such request should be made in a detailed manner." Discussing the timetable under which Algeria will make its decision known, the minister said only that this will be done prior to the convening of the next IMF-World Bank annual meeting, scheduled for next October in Tokyo, Japan.

Mr. Djoudi holds talks in Washington with representatives of US corporations

On April 23, Minister of Finance Karim Djoudi outlined Algeria's investment policy and its framework for regulating foreign partnerships at a gathering of U.S. business executives convened in Washington by the Anadarko oil company and the Corporate Board for International Understanding (CBIU). Business executives in attendance represented a host of corporations including General Electric, Dow Chemical Company, Northrop Grumman, Exxon Mobil, as well as consulting and investment-support firms. In his address, Mr. Djoudi explained that the investment policy implemented for the past several years by Algeria is based on a viable legal and financial framework, diversification of the economy in terms of production and revenues, deficit reduction in community facilities, regional expansion of economic development, and coverage of social needs of the population. In that regard, he underscored that in addition to implementing major public investment programs, the state has focused its actions on reducing fiscal pressure and customs levies, on revising the investment code to provide further guarantees to investors and on strengthening banks' support capabilities with regards to SMEs. As for the 51%-49% rule applicable to foreign direct investments, Minister Djoudi insisted to say that, in reality, in this type of investment deals, Algeria's contribution to the partnership is financial, whereas the foreign side intervenes on the management side. Therefore, he added, risks are shared between the partners.

IMF special report on the economic prospects for MENA region: Algeria carries the lowest debt and ranks 2nd in significance of currency reserves

El Moudjahid – April 22, 2012

According to a report issued by the International Monetary Fund (IMF), Algeria carries the least debt in 2012 in the 20-country MENA region and ranks second behind Saudi Arabia in terms of significance of its official reserves in foreign currency which, says the report, should reach $ 205.2 billion at the yend of the current year.

In an updated version of a special report on economic prospects for the Middle East-North Africa (MENA) region, released last Saturday April 21 in Washington, on the occasion of the World Bank Group (World Bank-IMF) Spring Meeting, the IMF indicated that Algeria's gross foreign debt will represent no more than 2.4% of the GDP in 2012 and should stay at that same level in 2013 (compared to 2.8% in 2011).

Foreign debt average for oil-exporting countries of the MENA region is 22.2% of the GDP, with Bahrain and Sudan carrying the heaviest debt burden with 135.2% and 77.8% of the GDP, respectively. The report indicated also that Algeria's public debt should decrease in 2012 and 2013 to represent 8.9% and 8.6% of the GDP, respectively (compared to 9.9% of the GDP in 2011.) Furthermore, the Fund considers that Algeria should close the year with official foreign currency reserves amounting to $205.2 billion and projects that the amount should increase to $224.1 billion in 2013 (compared to $183.1 billion in 2011.) Pursuing its assessment of the currency reserves (excluding sovereign funds) of the region's oil-producing countries, the IMF indicates that the 3 largest reserve holders are Saudi Arabia ($683.5 billion), Algeria ($205.2 billion), and Iran ($113.1 billion). The three countries should hold the same positions in 2013, the report says.

With regards to Algeria's nominal GDP, the IMF report says it should reach $206.5 billion in 2012 and $213.1 billion in 2013 (against $190.7 billion in 2011.) As to foreign trade, the Fund expects Algeria's exports to amount to $81 billion in 2012 and $78 billion in 2013 (against $76.8 billion in 2011). Imports, on the other hand, should amount to $57.4 billion in 2012 and $58.1 billion in 2013 (compared to $56.6 billion in 2011). Algeria's current account balance should reach $20.6 billion in 2012 and $16.8 billion in 2013 (compared to $19.6 billion in 2011), the report says.

World Bank-IMF Spring meetings: Finance Minister Djoudi in Washington

El Moudjahid – April 19, 2012

Minister of Finance Karim Djoudi will lead a delegation to the proceedings of the World Bank-International Monetary Fund spring meetings in Washington, scheduled for April 19 to 23. Mr. Djoudi will participate in the meetings in his capacity as Algeria's Governor to the World Bank Group. The meetings will be held in a climate marked by the election by the board of directors of the new and 12th president of the bank group, Mr. Jim Yong Kim. The Finance minister will attend the inter-governmental group meeting on international monetary issues and development (G24) as well as other meetings organized by the leaders of the Bretton Woods institutions. He will also take part in the proceedings of the IMF's International Monetary and Financial Committee and those of the World Bank's Development Committee. During his visit in Washington, minister Djoudi will also hold talks with several officials from the two financial institutions as well as some of his counterparts.

IMF report on global economic prospects: Positive indicators for Algeria for 2012 and 2013

Algeria began participating in the International Monetary Fund's (IMF) General Data Dissemination System (GDDS) on April 20, 2009, marking a major step forward in the development of its statistical system. Comprehensive information on Algeria’s statistical production and dissemination practices now appears on the IMF's Dissemination Standards Bulletin Board (http://dsbb.imf.org/Applications/web/gdds/gddscountrylist/).

The Governor of the Bank of Algeria, The Honorable Mohammed Laksaci, stated: “I am very pleased that Algeria has begun to participate in the GDDS. Algeria is committed to building a national statistical system consistent with best international practices. The IMF's GDDS provides an excellent framework for the development of statistical systems and participation in it proves the commitment of the data producing agencies to implement short- and medium-term plans for strengthening the statistical system and to monitor progress. I am confident that Algeria’s GDDS participation will lead to the production and dissemination of more reliable and timely statistics.”

Ms. Adelheid Burgi-Schmelz, Director of the IMF Statistics Department, welcomed Algeria's GDDS participation and observed: “Algeria’s participation in the GDDS is a major milestone in the country's statistical development. I am confident that Algeria will benefit from using the GDDS as a framework for further development of its statistical system. Algeria’s participation in the GDDS would also encourage other countries in the region to follow the same path.”

The GDDS was established by the IMF in 1997. It provides a framework to help countries to develop their statistical systems to produce comprehensive and accurate statistics for policymaking and analysis. Algeria is the 95th GDDS participant.

According to the official program designed by the Ministry of Commerce, Algeria will take part in close to 20 international fairs, specific exhibitions and specialized events to be held around the world in 2010. To this end, Algerian enterprises and businesspeople will be present in the international fairs of Khartoum, Sudan, in February, in Cairo, Egypt, in March, in Tripoli, Libya, on April 2-12, Paris, France, from April 29 to May 9, and Damascus, Syria, in July-August. They will also attend the international fairs held in Marseilles, France, from September 24 to October 4; Tunis, Tunisia, in October; Bamako, Mali, in November; Casablanca, Morocco, November 17-21; Dakar, Senegal, December 2-13; Ho Chi Minh, Vietnam, for the General Trading Fair, December 1-4; and Yokohama, Japan, TICAD.

Minister Chakib Khelil’s participation at the 24th World Gas Conference (Buenos Aires, Argentina)

In an intervention at the 24th World Gas Conference, held from 5 to 9 October in Buenos Aires, Argentina, Mr. Chakib Khelil, Minister of Energy and Mining, called for deepening dialogue between gas producer and consumer countries in order to adapt their economy and energy policy with world gas industry expansion objectives. Mr. Khelil said that the real challenge facing global gas industry is to ensure funding gas projects and carry out projects through a sale price profitable at long term. 

Furthermore, in an interview with the daily "WGC News" on the sidelines of the above mentioned Conference, he basically emphasized that the European gas demand is so "huge" that it should not give rise to any fears from the most important supplier countries. "The gas demand potential in Europe is so huge there are markets for everyone," he said dispelling as such suppliers’ fears. This is also true for the trans-Saharan Gas Pipeline (TSGP) which will cover 4,500 kilometers from Nigeria to Europe via Algeria, he pointed out. 

A draft agreement on industrial cooperation and investment promotion between Algeria and Italy was signed Wednesday, October 7th, 2009, in Rome by the Industry and Investment Promotion Minister, Mr. Hamid Temmar, and the Italian Minister of Economic Development, Mr. Claudio Scajola. The agreement, which provides for the setting up of a "Task Force", also identifies possible industrial partnership projects, as well as the supporting measures that will help achieve the common objectives. It also provides for the setting-up of a committee at the level of the two ministries to follow up common projects.