In one promising signal for hard-pressed liberals, the government has officially launched the privatization process for Credit Populaire d'Algerie (CPA), which could become the first state bank to be partially sold to the private sector. According to a Finance Ministry statement, all expressions of interest are due in by 7 November.
Earlier efforts at bank privatisation have foundered on the basis that the institution concerned was not an attractive proposition the case for Banque de Developpement Local (BDL) or because powerful local interests blocked or disapproved of a bid, as with an earlier attempt to buy into CPA by France's Societe Generale.
All prequalified applicants are to receive tender documents, including an information pack and legal documentation. The state intends to keep a 49% stake in the bank, and hopes to complete the partial privatization process by spring 2007. The government intends to release a study on the bank undertaken by the French arm of investment bank Rothschild, which has been advising the government on the sale since February, and which will assist in running the tender and completing the sale.
According to Algerian sources, there has been a great deal of interest in the sale, and about 40 international banks have already expressed their interest in the partial privatization. Those in the running are thought to include French quartet Societe Generale, Banque Nationale de Paris (BNP Paribas), Calyon and Le Credit Lyonnais, plus a number of Spanish and US banks (including Citibank), and Italian, North African and Arab banks.
While the health of the public banking sector is far from rosy, CPA has been among the better performing players. It commands a 12% market share and has assets of about AD430 billion (?4.8 billion).
A lot hangs on the success of this sale, given that it is the first in an apparent raft of financial sector privatizations. Two other state banks are due for some form of privatization, the perennial bridesmaid BDL and Banque Nationale d'Algerie. In theory, BNA is an attractive target for an ambitious incomer looking for representation across Algeria and a strong corporate portfolio, but there are major issues to solve if it is to be a genuinely attractive proposition.
The current issue of ALGERIA FOCUS also includes the following
Policy focus
It's official, parliament endorses greater state role
Khelil backs the move
IMF grumbles at wage hike
CPA privatizations: expression of interest due
Algeria earning record revenues
Algeria willing to reduce production?
Politics and security
Violence continues, Islamists manoeuvre ahead of referendum
An upsurge in killing
Families not mollified by disappearances compensation
Ksentini says security forces had acted illegally
Geopolitics
Western Sahara: Polisario prepares to defend diplomatic gains
France tries to repair relations with Algiers
Algeria will press UN on Sahara issue
Madrid committed to Western Sahara plan
Energy industry
Rahal spells out gas industry vision
Galsi accelerated
Renewables: wind gets a lift
Sonatrach qualifies for next Libyan round
New frontier in Chad
Axens wins strategy contract
ransmed contracts
First Calgary Petroleums confident
Business environment
Sellal's five year plan for water
French credit agencies to open Algiers office
Brain drain worsens
Four to bid for mining concessions
Air Canada starts direct flights to Algiers
Goldrim seeks partners
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