Algiers – On Friday, November 15, 2024, Minister of Finance Laaziz Faid highlighted that Algeria’s public debt levels remain notably lower than the benchmark for emerging markets and the averages recorded in most Arab and Mediterranean countries. This provides Algeria’s treasury with the flexibility to mobilize additional resources through its treasury bond market.
Speaking during a public session at the Council of the Nation, chaired by its president, Saleh Goudjil, and attended by various government officials, Minister Faid revealed that Algeria’s public debt is projected to reach 16,879 billion dinars by the end of the current year, equivalent to 49.61% of GDP. This figure is significantly lower than the 60%-70% benchmark commonly associated with emerging markets.
The Minister also emphasized that 99% of Algeria’s public debt is domestic, granting the country greater autonomy in financial planning and less reliance on foreign creditors.
Comparisons with Other Nations
Minister Faid compared Algeria’s debt levels to several countries in the region and beyond, noting that its public debt is substantially lower than nations such as Greece, Italy, France, and Spain, where debt exceeds 110% of GDP. This positions Algeria as a fiscally stable nation within a volatile global economic landscape.
Addressing Budget Deficits for 2025
To address the projected fiscal deficit for 2025, Algeria plans to utilize resources from the Revenue Regulation Fund, which is expected to receive an additional 500 billion dinars by the end of this year. Other measures include utilizing surplus revenues from hydrocarbons and tapping into domestic debt resources.
Social and Economic Priorities
In line with its commitment to protecting citizens from global inflationary pressures, the government allocated 600 billion dinars to subsidize essential goods in the 2025 financial plan. This ensures price stability for widely consumed products, offering relief to Algerians amid global market volatility.
The Minister also highlighted Algeria’s progress in expanding its financial markets, citing the historic success of the IPO of the Algerian Popular Credit Bank, which attracted over 112 billion dinars in investments. This initiative marks a significant milestone in the country’s financial sector and is one of the largest such transactions in Africa.
Investments and Local Development
For 2025, Algeria’s public treasury will finance 267 projects across 11 economic sectors with a total investment of 5,969 billion dinars. Notable allocations include:
- 1,433 billion dinars for local development, targeting ten provinces directly tied to improving citizens’ living standards.
- Special emphasis on the southern and high plateaus regions, which will receive 60% of regional allocations.
Key projects include:
- A 60-bed hospital in Tinzaouatine, reassessed at 418.43 million dinars in 2024.
- The dual-lane expansion of National Road 01 between El-Menia and Ghardaia, with plans to incrementally complete the project in future budgets.
Progress in Modernization
Minister Faid also outlined the strides made in digitizing and modernizing Algeria’s financial sector. This transformation aims to enhance efficiency and transparency across the Ministry of Finance and its affiliated institutions.
Future Plans
With members of the Council of the Nation set to vote on the 2025 Finance Law tomorrow, Minister Faid reaffirmed the government’s commitment to economic resilience and social stability, ensuring Algeria remains on a sustainable development path.
For further details on Algeria’s financial policies and initiatives, visit our official website: DZWATCH.DZ
Author: Nor-Eleslam
Algeria Public Debt 2025 Finance Law
