IMF questions Algeria about licences system and oil crisis
The International Monetary Fund (IMF) advised Algeria to release growth capacities out of public sector and male private sector the leader of the endeavour.
The IMF asked for explanations about licences system, foreign investment rule in Algeria and reasons why there no progress in negotiations about Algeria’s adherence to the World Trade Organization (WTO).
Algeria’s trade minister Bakhti Belaib gave a set of explanations to Middle East Advisor at the IMF on his visit to Algiers as part of annual talks with member states.
In their meeting, the two officials talked about relations between the IMF and Algeria and the current economic situation with falling oil prices. They also dealt with importing licences system, foreign investment rule in Algeria known as the 51-41 rule. Competition in domestic market and Algeria’s adherence to the WTO, exports promotion were discussed as well.
According to sources at the trade ministry, the IMF’s representative rose a set of questions about Algeria’s economic trends as oil prices fall.
The minister gave explanations and answers, saying Algeria experiences a trade deficit estimated at around $10 billion. Because of that, “protective measures” were imposed including importing licences system.
Speaking about the 51-49 rule, Belaib said it does not direct foreign investment but it encourages partnership in various fields.
As for adherence to the WTO, he said “priority is given to revise some points in the association agreement. Then, the adherence process will be relaunched. In this regard, hindrances are mainly caused by the European Union.”