ALGIERS,–Sonelgaz Group, the State-owned Algerian utility in charge of electricity and natural gas distribution, is negotiating loans with foreign creditors for loans to fund its investments, its chief executive officer, Noureddine Bouterfa, says.

“The (financing) deficit is tremendous; we have to resort to foreign borrowings. Currently, we have made some suggestions but we are waiting for the financial means,” Bouterfa told the media here Sunday before presentation the 2015 reports of the group’s subsidiaries.

Stressing that the group had no choice but to resort to foreign borrowings, he did not rule out an increase in electricity and gas charged in order to ensure that the group’s financial situation remained in equilibrium.

Bouterfa affirmed that longer-term solutions must be found to improve the financial situation of the group’s subsidiaries, because, despite the redemption of the bank overdraft by the Treasury Department in late 2010 totalling some 370 billion dinars (about 3.35 billion US dollars) and facilities granted to fund investments, financial constraints for the group remained “significant” in 2015.

Low revenues resulted in 98 billion dinar deficit in 2015. The most significant deficits have been recorded by companies in charge of electricity and gas distribution because of their high expenditures.



Source: Name News Network

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