The National Bank of Algeria (BNA) and the Credit Guarantee Fund for Small and Medium Enterprises (SMEs) have signed two new agreements aimed at strengthening financing mechanisms for SMEs. The agreements will broaden the scope of guarantees provided for working capital loans, both in their conventional and Islamic forms, a move designed to support SME financing and enhance business continuity.
The agreements were signed by Samir Tamrabet, Director General of the BNA, and El Hadi Tamam, Director General of the Credit Guarantee Fund for SMEs, in the presence of executives from both institutions.
The first agreement covers working capital loans related to conventional banking activities. The second agreement concerns working capital financing within the framework of Islamic banking, which will also benefit from the Fund’s guarantee, similar to the mechanism previously adopted for investment loans.
These agreements will enable SMEs to benefit from the Credit Guarantee Fund’s guarantee to cover working capital loans granted by the National Bank of Algeria. This will allow them to finance their operational needs, improve liquidity management, and support the continuity and growth of their economic activities. The BNA views this as a critical step in ensuring the long-term viability of Algerian SMEs.
The BNA has emphasized its commitment to supporting the growth of the SME sector, recognizing its vital role in the Algerian economy. By partnering with the Credit Guarantee Fund, the BNA aims to reduce the perceived risk associated with lending to SMEs, thereby encouraging increased investment and fostering a more dynamic business environment.
