BEA Launches Investment Loan for Bus Fleet Renewal
Banque Extérieure d'Algérie (BEA) has officially launched a new investment loan designed to assist passenger transport professionals in replacing public transport buses that are more than 25 years old. This initiative directly supports the national effort to modernize the public transport fleet, aiming to enhance the quality of passenger services and improve road safety across the country.
The financing scheme offers substantial support, covering up to 90% of the purchase price, including taxes, for new buses. Beneficiaries are required to make a minimum personal contribution of 10% of the total purchase cost. The loan is offered at an annual interest rate of 5.5% on the amount utilized, with repayment structured into convenient quarterly installments. Additionally, the program allows for total or partial early repayment, providing flexibility for transport operators. This initiative also includes exemptions from customs duties and Value Added Tax, further facilitating the acquisition of new vehicles.
To qualify for this investment loan, applicants, whether natural or legal persons, must secure an eligibility certificate from the Ministry of Interior, Local Authorities, and Transport, along with all requisite operating licenses. Required guarantees include the hypothecation of the financed bus, comprehensive insurance, and death and disability insurance for natural persons. The application process necessitates a signed financing request, biometric identification, a commercial register, and pro forma invoices for the bus and insurance. Legal entities must also provide their Official Bulletin of Legal Announcements (BOAL), tax identification number (NIF), a feasibility study, their last three years' balance sheets, and social security settlement certificates.
This comprehensive financial measure by the BEA aligns with the broader public authorities' plan to renew and modernize the national public transport sector. By providing significant administrative and financial incentives, the government aims to facilitate the systematic withdrawal of older buses, including those 30 years or older, thereby contributing to a safer and more efficient transport infrastructure for all citizens.
