Algeria: Public companies lost over $1 bln due to coronavirus

A general view taken on June 5, 2014 shows the Bay of Algiers with the old town of the Algerian capital known as the "Kasbah" in the background. (File/AFP)
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Updated 18 July 2020

Algeria: Public companies lost over $1 bln due to coronavirus

  • “Algeria is facing an unprecedented difficult economic situation,” said Prime Minister Abdelaziz Djerad
  • The government decided in early May to slash the state budget by half because of the global collapse in oil prices and coronavirus lockdowns

ALGIERS: Algeria said Saturday that the coronavirus crisis on top of falling oil prices have caused unprecedented damage to its economy, including over $1 billion in losses in the public sector alone.
“Algeria is facing an unprecedented difficult economic situation,” said Prime Minister Abdelaziz Djerad, quoted by the official APS news agency.
This was due to “the structural crisis inherited from the former government, the fall in hydrocarbon prices and finally, the health crisis” of the novel coronavirus.
The premier was speaking at a meeting at which Finance Minister Aymen Benabderahmane announced public company losses totalled more than $1 billion, affecting mainly the transport and energy sectors.
The government decided in early May to slash the state budget by half because of the global collapse in oil prices and coronavirus lockdowns.
The North African nation is heavily dependent on oil production, which generates over 90 percent of its export revenues.
The International Monetary Fund forecasts Algeria’s economy will shrink by 5.2 percent this year, and it will have among the highest budget deficits in the region.
President Abdelmadjid Tebboune has ruled out approaching the IMF for loans, saying, “accumulating debt harms national sovereignty.”
A commission tasked with assessing the impact of the pandemic on the national economy was set up Saturday, according to APS.
Algeria has reported several record daily tallies of COVID-19 cases in the past week, with 601 new infections confirmed Saturday.
The worst-affected country in North Africa, Algeria has officially reported a total of more than 22,500 cases of the COVID-19, including 1,068 deaths.


First Abu Dhabi Bank and Egypt Post launch services drive

Updated 30 September 2020

First Abu Dhabi Bank and Egypt Post launch services drive

  • The First Abu Dhabi Bank is the largest bank in the United Arab Emirates

CAIRO: First Abu Dhabi Bank in Egypt has signed a memorandum of understanding with Egypt Post to boost financial inclusion in society and improve customer services.

The strategy is in line with the country’s plan to improve and develop communication channels with citizens and improve access to basic services.

The agreement was signed by Mohamed Abbas Fayed, CEO of First Abu Dhabi Bank, and Sherif Farouk, Chairman of the National Postal Authority, Egypt Post.

A statement issued by First Abu Dhabi Bank said the memorandum of understanding will improve access to post offices, through which foreign remittances, salaries and pensions can be received and disbursed by Egyptians at home and abroad.

The partnership will also help the bank provide notification and collection services to customers, payments through its mobile smart wallet, services for collecting and paying customer dues, exchange and collection services for small and medium enterprises, credit services and contractual postal services.

The statement added that the agreement will build a culture of financial inclusion and awareness, while also reducing the cost of banking operations.

Farouk said that the memorandum will allow the authority to handle remittances of overseas Egyptians through its 4,000 Egypt Post branches across the country.

Fayed said the partnership is part of the bank’s strategy to boost access to customer services, whether individuals or companies.

He added that money transfers from outside Egypt are one of the most important sources of foreign currency for the country. Easing money transfers for Egyptians working abroad with First Abu Dhabi Bank via the National Postal Authority will increase the amount of remittance exchange outlets and transfers.

The First Abu Dhabi Bank is the largest bank in the United Arab Emirates and one of the biggest financial institutions in the world. Its network of branches are in 19 countries around the world, including Egypt.