Weekly MENA Newsletter will be delivered to your email in PDF format every Friday (52 Issues per Year).
Algeria’s reserve fund, the Fonds de Regulation des Recettes (FRR), has most likely become superfluous following the government’s decision to divert the country’s hydrocarbons revenue to the state budget effective 2017 rather than to the FFR.
The FFR for many years collected all ‘surplus’ hydrocarbon revenue and covered budget deficits. But its reserves collapsed by 59% during 2016 ending the year at just AD840bn ($7.6bn; $1=AD110), down from AD2,072bn at end-2015, AD4,408bn at end-2014 and a peak of AD7,917bn in 2012.
The FFR was set up in 2000 to accumulate surplus revenue for the state generated from the difference between a reference oil price (set at $37/B since 2009) and the market price at which oil was actually exported, with the fund covering annual budget deficits, plus the financing of expenditure on a discretionary off-budget basis. As oil prices topped $100/B from 2011 to mid-2014 the fund pocketed large surpluses from Algeria’s understatement of oil revenues. (CONTINUED - 574 WORDS)
DATA INSIDE THIS ARTICLE
|table||Algeria Customs Figures ($Bn): 2016 Export Earnings Down 54% From 2014 Levels|