A new provision has been added to the OJ No. 57 Law No. 17-10 supplementing Ordinance No. 03-11 from August 26, 2003 on Money and Credit.
The Article 45 will allow the treasury of Algeria to borrow funds directly from the Bank of Algeria.
President Abdelaziz Bouteflika signed the new provision, which stated that the Bank of Algeria “as from the coming into force of this provision, exceptionally and for a period of five (5) years, the purchase directly from the Treasury of securities issued by the Treasury, to participate in particular in covering the financing needs of the Treasury; the financing of domestic public debt and the financing of the National Investment Fund.”
This new development should help both in the areas of structural economy and budgetary reform, which will help the treasury of the state with balancing various payments.
Since the past revision which allowed the treasury to be bailed out by the Central Bank, the newest provision will have regulations in place for the good of the country.
