“Non-financial public sector debt is high,” the IMF laments in its December report on the 2021 Article IV consultations with Algeria.
According to employee estimates, this debt continues to surpass dizziness records, accounting for 29% of GDP by the end of 2020.
Two-thirds of this debt represents a real burden that is hampering the country’s growth and financial position, which is guaranteed by the government, and public companies must continue to seek public assistance, the Bretton company was quoted by Woods local media in this document.
In this sense, he called on the Algerian authorities to “develop and engage in a participatory strategy and to classify public institutions on the basis of their credibility, their strategic importance and the nature of their operations, while at the same time strengthening their management.”
The IMF has called on Algerian authorities to “improve the financial information and transparency of public institutions, publish a summary report on their financial decisions and strengthen monitoring to better manage financial risk.”
The IMF has declared itself “concerned” about managing public investment in Algeria.
In this document, IMF experts emphasize the importance of observing the “rationality of investment spending” in Algeria.
The IMF estimates that Algeria needs rigorous evaluation, selection and financial oversight of public investment plans.
IMF staff did not hesitate to warn Algerian authorities against budget risks associated with public investment projects, saying “projects should be classified according to their potential, their level of production and their economic impact”. It was decided without any rational logic attached to the need to control them and guide them towards productive investments capable of amassing wealth for the country.