The Algerian government’s decision to delay the privatization of Crédit Populaire d’Algérie (CPA) has met with a mixed reception. While one of the banks involved in the bidding had called for suspension of the sell-off and labor unions have applauded the move, others have questioned the government’s fundamental commitment to privatization. State banks are responsible for almost 95% of deposits and credits in the Algerian banking market. Despite their high levels of non-performing loans, they have retained the support of the authorities, particularly since the collapse of Algeria’s biggest private bank in 2003. However, the much-delayed CPA privatization had seemed to be a sign of renewed confidence in private banking. On November 24, 2007, the government announced it had suspended the final bidding process for the sale of a 51% stake in CPA, the country’s first privatization of a public bank, to reassess the effects of the global mortgage crisis
