The National Bank of Algeria and the National Railway Transport Co. of Algeria have signed an agreement for a $51.3 billion loan to modernize the public transport company.

The agreement will include all public banks and has been signed by National Rail Transport Co. General Manager Yassin Ben Gaballah and General Manager of the National Bank of Algeria Ashour Abboud, in the presence of Minister of Finance Abderrahmane Rouya and Minister of Transport and Public Works Abdul Ghani Za'lan.

The interest rate of the loan will be 1.5 percent over a 30-year payment period. After 10 years of payments, the interest rate will be waived.

The loan will finance the second part of the program set out to modernize the rail transportation. 

Costs associated with the modernization will include new trains, spare parts, repair and re-operation of trains that have been in accidents, and updates to the existing fleet.