Algeria: Selected Issues
IMF Staff Country Reports, June 1, 2017
Source details
- Canonical URL
- Algeria: Selected Issues
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Bibliographic details
- Published: June 1, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484302675.002
Overview
- 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.
Key findings
- 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.
- External borrowing would mitigate crowding out effects.
- External borrowing would strengthen international reserves, broaden the investor base, and raise awareness about Algeria’s economy.
Policy recommendations
- Undertake sustained fiscal consolidation to restore fiscal sustainability.
- Consider increased domestic government debt issuance to develop domestic financial markets and establish a reliable yield curve for private sector benchmarking.
- Consider external borrowing to mitigate crowding out, strengthen international reserves, broaden investor base, and raise international awareness of the economy.
Content in this bundle
- Country Report