July 25, 2007 -- Algeria's construction industry is in a state of "stagnation", sector firm bosses announced Tuesday (July 24th) during a press conference. The bosses of small and medium-sized construction firms spoke out against regulations of the use of sand and quarries, the high price of cement and "draconian public tender laws", including a dearth of bank financing.

According to the President of the Construction Materials Federation, "50% of companies in the sector have disappeared under the weight of the constraints," a development he believes could seriously compromise the government's plans to build one million homes.

"We have held 19 meetings with various government officials on the question of bank finance, but without any real result," said a representative of the Algerian business confederation, adding that the meeting with the banking association "has not moved things forward."

"The banks must modernise and get a handle on their costs," said another sector representative, continuing that "interest rates have been set three points too high."