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Algeria Rules Out Requesting Loans from IMF

Algeria Rules Out Requesting Loans from IMF

Tuesday, 27 July, 2021 - 08:45
Algerian President Abdelmadjid Tebboune. (AFP file photo)

Algerian President Abdelmadjid Tebboune confirmed that his country would not approach the International Monetary Fund (IMF) and international financial organizations for loans, despite the social and economic crisis.

Following a cabinet meeting, the presidency announced that Tebboune discussed the country’s general economic situation and noted that Algeria had not resorted to external debt, contrary to many expectations at the end of 2020 and the beginning of 2021.

Tebboune underscored the principle of non-external debt to strengthen Algeria’s sovereignty, urging its citizens to work to achieve this principle, read a presidency statement.

He also asserted that the level of reserves currently stands at $44 billion, compared to $53 billion at the end of 2019.

Algeria relies mainly on oil production, which generates about 90 percent of its export earnings.

The fluctuation of fuel prices is putting significant pressure on the country, and the decline in reserves prompted the government to reduce spending on imports and rationalize spending on investment projects.

The government has managed to keep external debt levels low and repeatedly ruled out borrowing from international institutions.

In May 2020, Tebboune adopted the same rhetoric, saying Algeria would prefer to “borrow from its own citizens, rather than the International Monetary Fund or World Bank.”

“Accumulating debt harms national sovereignty,” said Tebboune, asserting that the country will not approach international organizations for loans, despite a financial crisis triggered by a collapse in global oil prices and coronavirus lockdowns.

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