The debt of public enterprises in Algeria has exceeded $42 billion since the end of 2020

“The debt of non-financial public enterprises is high,” laments the IMF in this December report on the 2021 Article IV consultation with Algeria.

According to employee estimates, this debt, the amount of which continues to break dizzying records, represented 29% of GDP at the end of 2020.

About two-thirds of this debt, which represents the real burden preventing the country from becoming economically developed and stable, is guaranteed by the state, and public enterprises must regularly receive public assistance, the Breton Institute said. condemn the. Woods in this document quoted by local media.

In this sense, he called on the Algerian authorities “to formulate and communicate a participatory strategy and to classify public enterprises according to their viability, their strategic importance and the nature of their activities, while strengthening their governance”.

The IMF also called on the Algerian authorities to “improve the financial information and transparency of public enterprises, publish a summary report on their financial results and strengthen their oversight to better manage financial risks”.

The IMF has also declared itself “concerned” about the management of public investment in Algeria.

In this document, IMF experts stressed the importance of looking at “rationalization of investment spending” in Algeria.

The IMF has estimated that Algeria needs stricter evaluation, selection and financial monitoring of public investment projects than ever before.

“Projects should be classified on priority according to their feasibility, their state of readiness and their economic impact”, explained IMF staff who did not hesitate to warn the Algerian authorities against the associated budgetary risks. The decision was taken without any rational reasoning attached to the need to control what are meant for public investment programs and to direct them towards productive investments capable of yielding wealth for the country.

See also  Brussels aims to build 100 neutral cities by 2030

You May Also Like

About the Author: Hanley Mallin

Internet geek. Wannabe bacon enthusiast. Web trailblazer. Music maven. Entrepreneur. Pop culture fan.

Leave a Reply

Your email address will not be published.