Bank of Algeria Posts Report on Issued Securities

The amount of the securities issued as part of the non-conventional financing was DZD3,585 billion (US$31 billion) in end of March 2018, said the Bank of Algeria in its monthly situation published in the Official Journal no 32.

The issuance of securities has been conducted as part of the Article 45 a of the 2013 law on money and credit, modified and completed in October 2017.

This law stipulates that "the Bank of Algeria exceptionally and for a period of five years, can directly purchase securities issued by the Treasury, with the aim of contributing in covering the Treasury’s financing needs, the financing of the public debt and financing the Investment National Funds (FNI)."

In addition, the article 45 a states that the non-conventional financing "measure has been designed to support the program of economic and budgetary structuring reforms which should help readjust State treasury balance and restore the balance of payments stability."

A mechanism for the follow-up of the implementation of this measure by the Treasury and the Bank of Algeria has been defined.

This unconventional measure which aims at enabling the Treasury to mobilize exceptional financing will be applied for a period of five years.

In addition to a program of structuring economic and budgetary reforms, a more rational public expenditure and optimum tax revenue, this measure is set to restore the macroeconomic and financial balances.