Time not right for Algeria SWF

ALGIERS – World financial turmoil means this is not the right moment for Opec member Algeria to create a state investment fund, Finance Minister Karim Djoudi said in remarks published on Saturday.

The north African energy exporter has built up large foreign exchange reserves of more than US$110 billion and repaid most of its foreign debt thanks to high oil and gas prices. Newspaper commentators have said that the petrodollar windfall may prompt the government to copy other Opec member states and launch its own sovereign wealth fund (SWF).”Do you think that it’s the moment?” the independent El Watan newspaper quoted Djoudi as saying in answer to questions.”Because of the world financial crisis and the subprime affair, which has not yet finished doing damage, the sovereign funds are recording enormous losses.To launch a sovereign fund in an international situation so unfavourable is really inadvisable.”Asked if such a fund could serve to finance big public works projects in Algeria, he replied that the government was already performing this role.”The State does this,” he was quoted as saying.”We have invested hundreds of millions dollars in the construction of water desalination plants and petrochemical plants.The Algerian state is capable of going further in the establishment of major projects requiring large amounts of capital and in the financing of them in the medium and long term.”Nampa-ReutersNewspaper commentators have said that the petrodollar windfall may prompt the government to copy other Opec member states and launch its own sovereign wealth fund (SWF).”Do you think that it’s the moment?” the independent El Watan newspaper quoted Djoudi as saying in answer to questions.”Because of the world financial crisis and the subprime affair, which has not yet finished doing damage, the sovereign funds are recording enormous losses.To launch a sovereign fund in an international situation so unfavourable is really inadvisable.”Asked if such a fund could serve to finance big public works projects in Algeria, he replied that the government was already performing this role.”The State does this,” he was quoted as saying.”We have invested hundreds of millions dollars in the construction of water desalination plants and petrochemical plants.The Algerian state is capable of going further in the establishment of major projects requiring large amounts of capital and in the financing of them in the medium and long term.”Nampa-Reuters