Algeria reduces its debts, oil price effects measured

The Algerian central bank announced that the accumulated external debts in Algeria have reached $31.22 billion at the end of 1997 with a decrease of $2.38 billion since 1996. The bank promised to pay the rest of the debts back at their specified times.

In a press report from the Algerian News Agency, the bank stated that the total of the external debts has diminished from $33.6 billion in 1996, adding that the reduction was due to the rescheduling of foreign debts in 1995 worth about $7 billion.

The agency quoted the governor of the central bank, Abdel Wahab Karmat as saying that the operation of rescheduling the debts is related to economic reforms supported by a loan of $1.04 billion from the International Monetary Fund. The reform program has spanned three years and will end next month.

Meanwhile, Algerian officials said the reduction in oil prices in the world market will not strongly affect the economy due to Algeria's reserve of hard currency, which reached $8.8 billion at the end of February and will help cover any shortage in the country's flow of hard currency.