Algeria to privatize banks in response to oil price slide

State-owned banks in Algeria will soon be allowed to list in the stock exchange as Algiers continues to stumble in the aftermath of the plummeting oil prices.

The move will be an attempt by the Algerian government to promote its underdeveloped banking sector and diversify revenue sources.

According to reports the plan is also aimed at attracting foreign investors to acquire controlling stakes in banks, against a rule requiring Algerian firms to keep a majority shareholding in any partnership with foreigners.

The International Monetary Fund (IMF) and the World Bank have repeatedly urged Algeria to reform the underdeveloped banking sector and modernize its stock exchange to help attract investment.

Last year the country’s former finance minister had recommended the privatization of public banks and integration of renowned foreign banks into the Algerian market to revive the country’s economy which is highly dependent on hydrocarbons.