he proposed privatization of Credit Populaire d’Algerie (CPA) has shown the government’s renewed confidence in the private sector, with several international players bidding. Four years after the collapse of Khalifa Bank, the government has finally shown willingness to reduce its ownership of one of the smaller state banks. A successful privatization could build momentum for the sell-off of other state banking assets. On May 21, the Algerian government began reviewing the candidates for a 51% stake in CPA, the country’s fifth largest financial institution. Algerian Financial Reforms Minister Delegate Karim Djoudi said the process would also help bidders become better acquainted with CPA’s structure, credit policy and the local banking environment. The offer will be studied in July, while privatization is expected to be completed by end-2007. The government is set to retain a 49% stake in CPA for the foreseeable future. The CPA sale is seen as a test
