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Algeria refuses to borrow from IMF

May 20, 2021 at 10:34 am

Prime Minister of Algeria Abdelaziz Djerad in Algiers, Algeria on 10 September 2020 [Mousaab Rouibi/Anadolu Agency]

Algerian Prime Minister Abdelaziz Djerad said yesterday that his country has refused to borrow money from the IMF in order not to undermine its sovereignty, Anadolu reported.

The PM said that his government decided to maintain financial balances through certain measures in light of the fight against COVID-19, but absolutely refused to turn to the IMF.

Djerad said Algeria is currently being subjected to “political pressures” aimed at having its economy controlled by certain parties, which he did not mention, stressing: “This is completely rejected.”

Some countries have collapsed after borrowing from external parties, he said, as they “imposed political structures” on these countries.

In 2020, the budget law opened the door for international borrowing to deal with the $22 billion deficit affecting the budget due to COVID-19 and the drop in oil prices.

Income from oil trade contributes to 90 per cent of Algeria’s budget.

Algeria borrowed $32 billion in the 1990s, forcing it to adopt austerity measures including the closure of thousands of institutions and sacking of tens of thousands of workers.

In the middle of the last decade, Algeria decided to pay most of its debts. Only $3 billion remains unpaid.

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