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    • News 13 April 2020

    Smart Alert Covid-19 | Algeria | Extension of control measures and Introduction of support measures

    Smart Alert Covid-19 | Algeria | Extension of control measures and Introduction of support measures

    Two new Executive Decrees were adopted in order to extend and strengthen measures to prevent and control the spread of the Coronavirus (COVID-19), namely:

    • Executive Decree No. 20-86 of 2 April 2020 extending the provisions on measures to prevent and control the spread of the Coronavirus (COVID-19);
    • Executive Decree No. 20-92 of 5 April 2020 amending and supplementing Executive Decree No. 20-72 of 28 March 2020 extending the measure of partial confinement at home to certain wilayas.

    Several public authorities have adopted measures aimed at supporting companies in dealing with the COVID- 19 pandemic (the Bank of Algeria, the tax authorities, etc.).

    1.  NEW EXECUTIVE DECREES

    Decree 20-86 extends the following measures until 19 April 2020:

    • Exceptional paid leave of absence for 50% of employees in the public and private sectors (except essential personnel).
    • Total confinement in the wilaya of Blida.
    • Strengthened partial confinement in the wilayas of Algiers, Bejaïa, Tlemcen, Tizi Ouzou, Sétif, Médéa, Oran, Tipaza and Aïn Defla (from 3 p.m. to 7 a.m. the following day).
    • Partial confinement in the wilayas of Batna, Constantine, Boumerdes, El Oued, Mostaganem and Bordj Bou Arréridj (from 7 p.m. to 7 a.m. the next day).
    • Prohibition of any meeting of more than two people.
    • Restrictions on the freedom of movement (suspension of passenger transport such as air, road, rail or guided transport, taxis, etc.).
    • Closure of all land borders with neighbouring countries.
    • Closure of all retail businesses, except for essential businesses (food, cleaning and hygiene, pharmaceuticals).

    The above measures may be renewed and/or extended, modified or supplemented by decision of the Prime Minister..

    2. SUPPORT MEASURES

    2.1. Banking measures

    The Bank of Algeria has adopted an instruction No. 05-2020 dated 6 April 2020 on exceptional measures to alleviate certain prudential provisions applicable to banks and financial institutions.

    Instruction No. 05-20 of the Bank of Algeria introduces the following measures for a period of six months:

    • Reduction of the minimum threshold of the liquidity ratio from 100% to 60%.
    • Exemption from the constitution of the safety cushion set by Regulation No. 2014-01 of 16 February 2014 on solvency ratios.
    • Possibility offered to banks and financial institutions to defer, at their discretion, the payment of loans reaching their maturity date, or to reschedule the debts of their clients, having been impacted by the economic situation induced by the COVID-19.
    • Possibility for banks and financial institutions to grant new loans to clients who have benefited from the above-mentioned deferral or rescheduling measures.

    Pursuant to Instruction No. 05-20 of the Bank of Algeria, the Association of Banks and Financial Institutions (“ABEF”) announced on 8 April 2020 the following support measures, after examining the individual situation of each client, for a period of six months (31 March 2020 to 30 September 2020):

    • Postponement and/or renewal of credit facilities reaching their maturity date on 31 March 2020 and thereafter;
    • Consolidation of unpaid amounts as at 31 March 2020 and thereafter;
    • Extension of the deadlines for the use of credit facilities and deferred payments;
    • Cancellation of penalties for late payment of debts due on or after 31 March 2020;
    • Maintenance and/or renewal of operating loans.

    2.2. Tax measures

    The General Tax Department (DGI) has published a press release on tax measures to support businesses.

    These measures include in particular:

    • the extension of the deadline to file the annual income statement (balance sheet and notes) to 30 June 2020 (or 31 May 2020 for companies depending of the Large Enterprises Division);
    • the extension to 20 June 2020 of the deadline for payment of the 1st income-tax instalment (IBS and IRG);
    • the possibility of requesting a payment schedule for tax debts for taxpayers who find themselves in a difficult financial situation.

    The full text of this press release is available on the DGI website