The financing mechanism by the lease approval of the Algerian economic institutions

Guessouri Insaf , Guessouri Fahima

Abstract

The research paper deals with the topic of the rental approval mechanism as an alternative method of financing investment projects projects in Algeria to enable the institution to obtain the required capital assets by renting it without owning it and paying its full price. The matter is limited to the tenant paying periodic rent while the lessor retains ownership of the asset with the possibility of transferring it to Tenan, and the result reached to it is that Algeria has endeavored to provide financing alternatives to the corporation without resorting to its own funds and the use of the asset without its ownership, as well as enacted several laws and legislations to develop the rental accreditation mechanism and the development of institutions specialized in financing with technology Lease approval by order 96-09 of 10-01-1996 regulating the application of credit in the Algerian market