Despite the significant excess liquidity contraction in 2015 and the re-emergence of the crowding out effect in 2016, bank credit remains a potentially important channel in financing productive investment. This highlights the importance of effective bank intermediation to benefit inclusive, non-hydrocarbon growth, with the objective of attaining in the medium term a target ratio of investment financing and SME loans to non-hydrocarbon GDP. To this end, and in parallel with the gradual development of the financial market, banks should diversify their financing tools whilst pursuing their efforts in improving credit risk analysis, monitoring and control. The new credit bureau will be most helpful in this regard. Banks should also further develop their advisory activity for SMEs, particularly with regard to investment projects analysis. To bolster the new financing scheme of non-hydrocarbon growth, where the recourse to external borrowing should be gradual, banks must expand their medium and long term resources through the promotion of attractive financial products, notably in terms of real returns for savers. The substantial level of currency in circulation (30 percent of GDP in 2015) provides a valuable opportunity to improve banking intermediation during this period of a resources gap. To reduce the impact of the crowding out effect associated with the Treasury’s financing needs as of 2016, in a context of significant contraction in the hydrocarbon sector’s self-financing capacity, the Bank of Algeria will provide liquidity to the economy to stimulate the dynamism of sound credits, whilst preserving the sustainability of the net external position.

Mark Carney: The Sustainable Development Goal imperative Remarks by Mr Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at the United Nations General Assembly, High-Level Thematic Debate on Achieving the Sustainable Development Goals, New York City, 21 April 2016. * 1. *  *  The SDG imperative  The Sustainable Development Goals are a moral imperative, with objectives that include nothing less than ending poverty, fighting inequality and injustice, and tackling climate change. 1 The SDGs are also an economic imperative. Their achievement would mean greater productivity, increased labour supply and ultimately stronger growth. In short, they could pull the global economy out of its current malaise of secular stagnation. 2. The scale of investment required to achieve the SDGs is immense  Achieving the SDGs will require both a step change in the quantum of investment and a marked reorientation of its destination. Over the next 15 years, the global population is expected to grow by just over a billion. 2 Another one and a half billion people are expected to urbanise. 3 Although moving to a low-carbon future will not necessarily require substantially more investment than business as usual, 4 it will require a radical re-focusing of that investment from high- to lower carbon technologies. Overall, it is estimated investments of between $ and $ trillion a year are needed for infrastructure, clean energy, water, sanitation, agriculture, and the other SDGs. 5 This is significant but achievable. 3.