No External Debt Until 2031, President Tebboune Affirms Amid Reserve Strategy

President Abdelmadjid Tebboune has publicly refuted projections by the International Monetary Fund (IMF) concerning Algeria's foreign exchange reserves, assuring the nation that these reserves will be maintained at an acceptable level. During his periodic interview with the press, aired on national television and radio, President Tebboune explicitly ruled out any recourse to external debt for Algeria until 2031. He emphasized that the country possesses sufficient reserves to avoid borrowing, signaling a positive outlook for its financial independence.

The IMF's report, published on September 21, projected a decrease in Algeria's foreign exchange reserves from an estimated $68.9 billion in 2024 to $19.8 billion by 2031. President Tebboune, however, contested these forecasts, stating that international financial institutions do not possess all relevant data on Algeria's economy. While acknowledging the IMF's projections, he maintained that the reserves would remain at an "acceptable level" through 2031, further suggesting they would be "elevated" by that time.

To bolster foreign exchange reserves and ensure economic stability, President Tebboune highlighted several strategic initiatives. These include a focus on non-hydrocarbon revenues, with ongoing projects expected to generate a stable annual income of at least $50 billion. He specifically cited major mining projects, such as the integrated phosphate project in the East and increased integration of iron into national industry, alongside developments in the automobile and electronic chip sectors. The President also underscored the importance of regulating imports, noting successes in local production reducing the import bill, and mentioned 10,000 projects registered with the Algerian Investment Promotion Agency (AAPI), including 300 foreign-led initiatives.