Coronavirus: faced with falling oil prices, Algeria takes austerity measures

Text by: RFI Follow

The Algerian government took important austerity measures on Sunday March 22 in the face of falling oil prices. With global demand at half mast due to the Covid-19 pandemic and rising supply, crude prices have fallen by half compared to the start of the year, which does not help state affairs Algerian who had counted on a barrel of 60 dollars for its 2020 budget.

Publicity

For his first budget, the new Algerian president Abdelmadjid Tebboune could have dreamed better. The plunge in oil and gas prices since the coronavirus crisis requires unprecedented austerity. Imports will be cut by ten billion dollars this year, and the state will cut operating costs by about a third.

Major projects registered but not yet started are suspended, with the exception of those which are deemed vital for the development of the country. Sonatrach, the oil giant, the largest public company, is ordered to halve its operating and exploration costs in order to save the equivalent of $ 7 billion.

Founding foreign exchange reserves

Because the country's foreign exchange reserves have been melting like snow in the sun for three years and the current crisis will not reverse the trend. The austerity package saves the salaries of civil servants who will not budge, but also the ministries of education and health. Health has just received $ 100 million to buy pandemic equipment.

Algeria, which entered stadium three this weekend, placed its hospitals in a state of emergency, closed its restaurants and cafes in major cities, and severely limited public transport.

Newsletter With the Daily Newsletter, find the headlines directly in your mailbox

Download the app

• Algeria
• Coronavirus
• Economy

On the same subject

Coronavirus: in Algeria, the 57th Friday of the demonstration will not take place

Coronavirus: Hirak in disarray in Algeria

Coronavirus: Algeria suspends links with France