FGAR continues to sign agreements with banks: support for SMEs through operating loans

Following on from Banque Al Baraka Algeria last November, FGAR has just concluded another agreement with Al Salam Bank. Other banks will also be involved.

Through this commitment, Fgar confirms that its approach is not solely technical, but also represents a practical commitment to investors and project developers, while offering them a reassuring message that encourages them to develop their activities, contribute to the creation of added value within the Algerian economy and pave the way for future agreements.

The ultimate goal is to strengthen the diversification of financing offers and support the economic transformations that Algeria is undergoing. The CEO of Fgar indicated, in this regard, that the Fund he heads "has embarked on a coherent approach, in line with other measures to support investment or upgrade the SME fabric, hence the need to create synergy with all structures related to SMEs".

The Director of SMEs at the Ministry of Industry, Mohamed Benyoucef Benbouali, emphasised that the FGAR, through its long experience and institutional positioning, is a "strategic partner". This type of agreement will accelerate the pace of SME development, benefiting the national economy, especially as the Fund plans to sign similar agreements with other banks.

This is also a strategic step reflecting a shared desire to support the national economy and strengthen the capacities of economic enterprises, particularly SMEs. It should be noted that the FGAR is continuing to expand its guarantee scheme to operating loans, through the signing of agreements with 15 partner banks, a process it intends to complete by the end of January to strengthen financial support for SMEs. These agreements set a credit ceiling of 50 million dinars, with a maximum guarantee of 35 million dinars, corresponding to a coverage rate of 70%.

The extension of the guarantee to operating loans aims to address the financing difficulties encountered by SMEs, particularly those in the start-up or development phase, which often lack the collateral required by banks. This mechanism shares the risk among the FGAR, banks, and financial institutions, thereby promoting the granting of short- and medium-term financing.

According to the FGAR's balance sheet, the institution's data show that it supported 297 SMEs in 2025, with an estimated 5,615 jobs created. The total cost of its projects amounts to 40.5 billion dinars, with a total of 12.29 billion dinars in guarantees granted.

As part of its strategic plan for 2026, the FGAR plans to launch a new operating credit guarantee product, install and implement a remote data backup solution in Annaba, gradually overhaul the Fund's information system with the deployment of a modern integrated platform, and open new FGAR branches in other wilayas.