Good news for promoters who have launched their projects under the ANSEJ (National Agency for Youth Employment Support) in Algeria. The country’s Minister of Finance, Aymane Benabderrahmane, has announced a series of facilitation measures in their favor.
“After a series of marathon meetings with all the officials concerned, we managed …to come up with solutions to the financial and tax problems that were blocking the microenterprises of Ansej,” said the minister.
Here Is What You Need To Know
- Under the new regime, there would be rescheduling of debts in favor of companies in activity and which have difficulty in repaying their bank loans. This will also include “simplified procedures, such as erasure of late penalties and reducing interest rates by 100%” the Minister said.
- With regard to companies that have been shut down but which remain indebted to banks, it was agreed, according to the minister, that the banks be compensated by ANSEJ’s guarantee fund.
“This is the best way to allow banks to recover their due,” said Aymane Benaderrahmane.
- In addition, the Minister announced that government has also decided to increase to five, instead of three years, the duration of payment of tax credits by these companies. This provision will be included in the 2021 finance law, said the minister.
- The minister also assured that decision had already been taken to accelerate the process of financial disputes involving promoters of companies under ANSEJ, and consequently to release the promoters from liabilities.
- To that effect, all criminal proceedings against promoters in litigation with the banks or with the Public Treasury have, consequently, been lifted and withdrawn.
- For the minister, all these measures are intended to breathe new life into the ANSEJ system, which has created hundreds of jobs.
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A Look At What ANSEJ Does
- Algeria’s National Agency for Youth Employment Support ( Ansej ) is the country’s organization responsible for managing a credit fund for the creation of businesses. She participates in the public employment service .
- Ansej is in charge of implementing a support system for business creation for people under 40 years of age. It manages a credit fund, granting loans at zero interest rate (0 rate loans), complementary to bank loans. Committees composed of representatives of banks and institutions grant the loans after examining the files of the promoters.
- A bank guarantee fund supplements the financing instruments. Algeria ‘s Ansej advisors provide follow-up to promoters who have obtained a loan.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer