Press Releases
print

IFC Showcases Best Practices in Management of Non Performing Loans Management in Algeria


In Washington:
Ahmed Badawi-Malik

Phone: +1 (202) 458-7148

Fax:      +1 (202) 974-4384

Email:
Abadawi@ifc.org

In Algiers:

Raif Mokretar-Karroubi

Phone: + (213) 2154-8010

Fax:     + (213) 2154-9582

Email:
rmkarroubi@ifc.org


ALGIERS/WASHINGTON, D.C., September 29, 2004— The International Finance Corporation, the private sector arm of the World Bank Group, today organized a one-day conference in Algiers: “Best Practices in Management and Recovery of Non Performing Loans”.

Non-performing loans management and recovery is unanimously recognized as a key problem for Algerian banks, mostly state-owned institutions, whose bad debts were restructured several times, including most recently by the Algerian treasury. The inefficiency of non-performing loans management among local banks partly explains the slow growth of loans outstanding in Algeria. An improvement in this area would boost profits in the banking sector over the short term, and help encourage greater lending activity over the medium term.


Some 80 commercial bankers, government officials, representatives of  multilateral and bilateral programs, private sector, and top consulting firms attended the conference, held at  the National School of Administration. Abderrahmane Benkhalfa, the President of the Algerian Association of Banks and Financial Institutions, opened the conference.


The conference addressed topics such as non-performing loans management within the framework of Basle II guidelines, proactive portfolio management, role of MIS in the optimization of the recovery process, and various local and international experiences in non-performing loans management.


“To aggressively market lending products, financial institutions need to be confident in their capabilities to manage the associated risks“, said Sami Haddad, IFC director for Middle East and North Africa. He added, “By encouraging the development of sound workout practices, IFC participates in increasing access to finance for the private sector.”


Mr. Abderrahmane Benkhalfa added," We count on IFC's support to disseminate best practices in banking in Algeria, as well as partnering with us on removing bottlenecks in the banking environment."


The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.