May 22, 2007 -- Even though Algeria is not in need, at present, of external financial outflows, its return on the international financial markets is deemed as a prerequisite.

This is likely to refurbish the brand image and the credibility of the Algerian economy, in the hope of attracting maximum foreign investors which could spawn further wealth and curb unemployment in the country.

This could, however, be achieved only through an official rating established by several major international credit rating agencies.

According to the latest report issued, of late, by the International Monetary Fund (IMF), Algeria is keen on embarking upon such an endeavour.

To this effect, the reimbursement of a sizable part, by Algeria, of its external financial debt over the past few years could in itself be a positive factor in the current bid to secure a satisfactory rating.

The clearing of the debt will allow Algeria not only to have a foothold on the international market in good conditions but also to improve markedly one of the rating elements which characterize every borrower on the world financial market.

These ratings establishing the so-called “risk factor", are attributed by renowned rating bodies like Standard and Poor's, Moody's and Fitch.

According to the IMF, Algeria has, since 2004, reimbursed before due date an external financial debt package estimated at 14 billion dollars.

The outcome in terms of benefit for Algeria is that the debt report in relation to the gross domestic product plummeted from 34% in 2003 to 4.5% by the end of 2006. The IMF foresees that this rate will further go down to less than 3% of the gross domestic product by 2011.

All things considered, the repayment before due date of part of the external financial debt, makes the Algerian economy less vulnerable to a possible slump in its overall oil revenues.

Algeria is thus contemplating becoming a preferential creditor country and snatching a solid foothold on the world capital market thanks to its financial solvency and its perky economy.

This is the outcome of a sound and reliable policy-line adopted in all sectors of activity notably in terms of job-creation and the various incentives to attract national and foreign investments through a new package of sweeping reforms.