The Loan Guarantee Fund expands its services to include exploitation loans – Algerian Al-Hiwar newspaper

The Director General of the Loan Guarantee Fund for Small and Medium Enterprises, Al-Hadi Tammam, confirmed that the Fund continues to expand the scope of its services to include exploitation loans, by signing partnership agreements with 15 banks, expected to be completed before the end of this month of January, with the aim of enhancing financial accompaniment for the benefit of project holders.

Tamam explained that, starting last November, the Fund began signing agreements with three banks to include exploitation loans among the guarantees it grants, with the number of partner banks increasing to 15 banks during January 2026.

According to what these agreements stipulate, the loan ceiling was set at 50 million Algerian dinars, with a maximum guarantee of 35 million dinars, meaning a coverage rate of up to 70 percent. This step comes in implementation of the provisions of the Finance Law of 2025, which allowed the Fund to guarantee exploitation loans granted by banks and financial institutions, after its activity, since its establishment in 2004, was limited to guaranteeing investment loans only.

The Director-General indicated that expanding the guarantee for exploitation loans aims to respond to the financing difficulties faced by small and medium enterprises, especially those in the construction or expansion stages, which often lack the in-kind guarantees required by banks. This procedure also contributes to sharing risks between the Fund, banks and financial institutions, which encourages the granting of financing in the short and medium term.

Regarding the outcome of the Fund’s activity, the data showed that 297 small and medium enterprises were registered during the year 2025, which will allow the creation of about 5,615 job positions. The total cost of the projects amounted to about 40.5 billion Algerian dinars, against guarantees granted worth 12.29 billion dinars.