IMF Staff Country Reports

Algeria: Selected Issues

Publication Date:

June 1, 2017

Electronic Access:

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Summary:

This Selected Issues paper discusses options for financing future fiscal deficits in Algeria. Algeria needs to undertake sustained fiscal consolidation to restore fiscal sustainability. The authorities should consider borrowing both domestically and externally to finance future fiscal deficits. Increased government debt issuance would facilitate the development of domestic financial markets by creating a reliable yield curve that serves as a benchmark for private sector issuers. The authorities should consider external borrowing, which would not only mitigate crowding out effects but also strengthen international reserves, broaden the investor base, and raise awareness about Algeria’s economy.

Series:

Country Report No. 2017/142

Subject:

External debt Fiscal risks Government debt management Inflation Prices Public debt Public financial management (PFM)