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Algeria plans stimulus to counter fall in oil prices
ALGERIA
ALGERIAN President Abdelmajid Tebboune has ordered his government to prepare a sup- plementary budget to help guard the country’s economy against the steep drop in crude oil prices.
The president issued instructions to this effect on March 17, during a working meet- ing with cabinet members in Algiers. Those in attendance included Prime Minister Abdelaziz Djerad, the head of the central bank and the min- isters of agriculture, energy and mining, finance, industry, trade. They gathered “to [assess] the country’s economic situation in the wake of the sharp collapse of oil barrel prices in international markets,” the presidential press office said in a statement.
Tebboune noted at the meeting that world crude markets had taken a bearish turn over the last week, partly because of the collapse of the OPEC-plus production deal and partly because of the decline in world energy demand that has followed the coronavirus (COVID-19) outbreak. These events are sure to have a negative impact on Algeria’s economy, he said, but the supple- mentary budget will help contain the damage.
According to the statement, the president charged Finance Minister Abderrahmane Raouia with drawing up the measure. He told Raouia that the stimulus package should “include measures that would address the finan- cial effects of the current crisis and the collection of taxes and unpaid customs duties,” the press office said.
As of press time, officials in Algiers had not said how much money the budget might make available for investment in the local economy.
Tebboune indicated on March 17, though, that he did not want to finance the measure through foreign loans. Instead, he instructed Raouia to seek assistance from private Islamic banks, saying that his government was not will- ing to “resort to borrowing.” Nevertheless, the president also told the minister to “ensure that the loans granted by banks within the framework of private investments are repaid,” the statement said. It also noted that Tebboune had charged Benabderahmane Ayman, the governor of the central bank, with overseeing efforts to give the Algerian economy a boost through extra spending.™
Liberia suspends fuel importers’ licences
LIBERIA
LIBERIA has suspended the licences of all fuel importers so that it can conduct performance reviews, after some companies overdrew from state-run reserves earlier this year, sparking gas- oline shortages. Among the companies affected is France’s Total.
Officials claim that importers that make use of state storage tanks took out fuel exceeding their quotas. As a result, the government became aware in January that it only had 1.1mn gallons (5.0mn litres) of gasoline remaining in storage, a quarter of the amount it thought it had.
Long queues at filling stations emerged in late January as supplies began to dry up. Shortages have put further pressure on the impoverished West African nation’s economy, already reeling from 30% inflation and currency depreciation.
They have also stoked anger against authorities.
The problems were compounded by the fact that Liberia’s main port in the capital Monrovia was unable to receive large fuel tankers because of unusually shallow waters.
Silt and detritus had been accumulating at the port since summer, and heavy rains
have prevented crews from routine dredging operations.
According to local reports, the port has now been dredged to the necessary depth.
Shortages have dissipated, and the govern- ment has claimed there is enough fuel to last for several months. In a statement, however, Pres- ident George Weah’s office said that importers’ licences would be suspended so that authorities could verify whether they were fit to operate.
Information Minister Eugene Nagbe con- firmed to Reuters that Total, the largest fuel importer, had had its licence temporarily sus- pended, but that its review could be fast-tracked.
The French major stores its fuel in private facilities. As of press time, Total had not com- mented on the matter.
According to the presidency’s official state- ment, importers that overdrew from storage will have 90 days to pay for what they took beyond their quota. It also noted that the deputy man- aging director of Liberia Petroleum Refining, which operates the state’s reserve tanks, had been fired “for gross negligence and fraudulent activities.” ™
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