Bouteflika: Creation of a public investment fund before the end of February

Algerian President Abdelaziz Bouteflika announced on Tuesday in Arzew near Oran, (430 km west of Algiers) the creation by the end of February of a National Investment Fund with a capital of 1.5 billion euros to finance local projects, according to the press agency APS.

•     "This fund, based on a reorganization of the Algerian Development Bank, will be endowed by the State with a capital of 150 billion dinars (1.5 billion euros). This new device will be able funding over the medium term investments of up to a total of 1.000 billion dinars (10 billion euros), said Bouteflika.
  
      He also announced an investment plan of 150 billion dollars for the next five years, in a speech on the occasion of two anniversaries: The founding of the UGTA (General Union of Algerian Workers) and the nationalization of hydrocarbons.
  
      He estimated that the investments made during the decade (1999-2009) have "certainly a positive impact on economic growth, but have not been accompanied by a creation of activities and the resources mobilized by the State."
  
      Mr. Bouteflika said that the imports of Algeria have reached nearly 40 billion dollars in 2008, against about 13 billion dollars in 2003, while imports of services increased from less than 3 billion dollars in 2003 to nearly 8 billion dollars last year.
  
      At this rate of increase in imports, the oil revenues, even with a major price of a barrel, would be increasingly inadequate to preserve the medium term, our financial independence and ensure the continuity of our development” he said.
  
      Algeria derives 98% of its foreign exchange earnings from exports of oil (76 billion dollars in 2008).
  
      
  Ennaharonline/ M. O.