Algeria: Banks have until June 30 to raise their capital to $150mln

(Ecofin Agency) – The 20 banking institutions operating in Algeria as well as the 8 financial institutions licensed in the country have until June 30, 2021, to get a minimum capital of 20 billion dinars ($150 million) for banks and 6.5 billion dinars ($49 million) for financial institutions, as decided by the Central Bank of Algeria.

Given the impact of covid-19 on economic activity and more directly on banks, added to the decline in the overall liquidity of Algerian banks (regression to 612 billion dinars in November 2020), the regulator agreed to grant banks an additional six months to meet this requirement, whose initial deadline was set at 31 December 2020.

The additional period reflects the non-compliance of several banks on the originally scheduled maturity date. The measure was aimed at strengthening the soundness of the Algerian banking sector.

Chamberline MOKO

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