BEA Funds Replacement of Aging Public Transport Buses
The Banque Extérieure d'Algérie (BEA) has launched a new financing initiative for passenger transport professionals, marking a significant step towards modernizing the national bus fleet. This program specifically targets the replacement of buses that are 25 years of age or older, with BEA offering to cover up to 90% of the total acquisition price of new vehicles. This move establishes the first banking financial framework dedicated to this comprehensive fleet renewal effort, which is set to mobilize banks alongside sector professionals for acquiring new vehicles.
Under the new financing arrangement, beneficiaries, whether individuals or legal entities, are required to make a minimum personal contribution of 10% of the vehicle's purchase price. The credit is offered at an annual interest rate of 5.5%, exclusive of taxes, applied to the utilized amount. Repayment is structured through quarterly installments, with a six-month deferral period following the mobilization of funds, meaning the first installment is due in the ninth month. Additionally, the scheme permits both total and partial early repayments. Eligibility for the financing necessitates an eligibility certificate issued by the Ministry of Interior, Local Collectivities and Transport, along with all requisite operating authorizations.
To secure the financing, provisions include the pledging of the acquired bus, comprehensive all-risk insurance with rights delegated to the bank, and death and disability insurance for individual applicants. While BEA is the initial national bank to formalize this specific financial support, other banking institutions are anticipated to contribute to the broader effort of modernizing the national bus fleet. This initiative follows recent actions by transport directorates in various wilayas to withdraw operating documents from passenger buses aged 30 years or more, underscoring the ongoing national push to renew public transport infrastructure.
