Opening the capital of public banks will revive the investment sector – Algerian Dialogue

Nasira Sayed Ali

Experts in economic affairs confirmed in their interview with “Al-Hiwar” that the decision of the President of the Republic, Abdelmadjid Tebboune, to open the capital of some public banks will reflect positively on the financial and monetary market, and will expand the circle of investment and stimulate the economic and commercial movement, and thus will contribute to the promotion and development of the national economy, provided that a favorable formula is found. To complete this process, which has an important character in the national economy.

This is how the capital of public banks is opened

In this context, the financial expert, Dr. Abdel-Rahman Aiya, told Al-Hiwar that opening the capital of public banks is not an easy matter. Rather, the process requires technical mechanisms, given the economic importance of the process. Inserting one or more partners into a bank owned 100 percent by the state to own it. The value of 30 percent of the bank’s share has a strategic dimension, as the new partner receives a percentage of profits equal to his share and bears the same amount of losses, and if profits are achieved at the end of the financial year, he gets a percentage equal to his share. The same applies to the issue of decision-making. Issued by the bank’s board of directors, and on the basis that 30 shares is not insignificant if owned by one or more private individuals, here the government adds, Dr. Aya: The government is looking forward to the decisions being effective, working to upgrade the bank’s performance, improving its management style, and the mechanisms for attracting shoppers, which is considered a gain for the economy. National Bank, especially in the issue of settling payments related to internal commercial and production activities, as well as operations related to increasing export capabilities.

The financial partner keeps improving performance to avoid loss

As for the decision-making process, the economist Dr. Abdel-Rahman Aiya explained that the state, as it has the greatest value in terms of shares, in the event that it raises its hand or its file, the first word goes to it, because the state gives great importance to the social aspect as it tolerates clients, while the private economic partner seeks Regarding profitability at the end of the fiscal year, in this case, the partners work their best to bring in highly qualified experts, accountants, and experts who can be relied upon in the process of increasing the value of the partner’s profits and improving its performance, because the state takes the equivalent of 70 percent and the rest is divided among the partners, and this is what is called Secretly opening up bank capital.

The government must explain how to open the capital of public banks

On the other hand, financial expert Dr. Abdel-Rahman Aiya believes it is necessary to explain how to open the capital of public banks, because the process, according to him, requires the government to find a mechanism to implement this issue on the ground. He explained that the process of opening the capital of banks takes place through the stock exchange. In this case, as he said, the bank must go to The stock exchange, that is, it sells its shares, which are estimated at 30 percent, and here the basic role it plays in this process appears, because selling outside the stock exchange is very difficult, and it will keep us in the typical management, and that in the case of searching for efficiency, the state must go to the market and there it will find the appropriate price and everything necessary. Seller and buyer.

Opening the capital of public banks will expand the investment circle

For his part, the economic expert, Dr. Mohamed Bouhda, in his interview with Al-Hiwar, believes that if some public banks open their capital, which was approved by the President of the Republic, Abdelmadjid Tebboune, this decision can achieve four financial and economic goals, the most important of which is absorbing the monetary mass present in the markets. The parallel financial system, which is hoarded outside its official embrace, and which does not benefit the Algerian economy, and the second goal is to achieve the contractionary policy to reorganize the financial and monetary markets. This process, according to the same expert, also aims to encourage investment financing in the official market in order to enhance confidence among economic operators. And banks.