Algeria refuses to borrow from IMF – Middle East Monitor
Algerian Prime Minister Abdelaziz Djerad said yesterday that his country refused to borrow money from the IMF so as not to undermine its sovereignty, Anadolu reported.
The prime minister said his government had decided to maintain financial balances through certain measures in light of the fight against COVID-19, but absolutely refused to turn to the IMF.
Djerad said Algeria was currently under “political pressure” aimed at controlling its economy by certain parties, which he did not mention, stressing: “This is completely rejected”.
Some countries have collapsed after borrowing from outside parties, he said, as they “imposed political structures” on those countries.
In 2020, the finance law opened the door to international borrowing to address the $ 22 billion deficit affecting the budget due to COVID-19 and falling oil prices.
Revenues from the petroleum trade contribute 90 percent of Algeria’s budget.
Algeria borrowed $ 32 billion in the 1990s, forcing it to adopt austerity measures, including the closure of thousands of establishments and the dismissal of tens of thousands of workers.
In the middle of the last decade, Algeria decided to pay off most of its debts. Only $ 3 billion remains unpaid.
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