Hit by the fall in oil prices, Algeria will seek to issue local currency debt for its financing needs, state press agency APS reported Prime Minister Abdelmalek Sellal as saying.

Algeria to issue local debt

Algeria

ALGIERS, March 3, 2016 – Hit by the fall in oil prices, Algeria will seek to issue local currency debt for its financing needs, state press agency APS reported Prime Minister Abdelmalek Sellal as saying.

 

According to Sellal, his government would offer a 5% interest rate on the debt issue, the size and maturity of which remain unclear. The measure follows a reduction in state subsidies, lower public spending and shelving infrastructure projects.

While affected by the drop in oil prices, Algeria is estimated to hold USD 130 billon in reserves, down from around USD 195 billion in 2014. The country holds gas reserves of some 4.5 tcm (159.1 tcf) and produces around 1.5 million bopd.