City restricts buying homes

Opec member Algeria’s economy has been largely based on a state-run and centralised system since its independence from France in 1962 and it remains reliant on an energy sector that still provides 60 percent of its budget.

But the oil price drop since 2014 has put Algeria under financial pressure, forcing the government to trim spending and search for alternative financing sources.

“The era of $100 a barrel is over. We have no choice but to change our policy,” the official said, while asking not to be named because they were not authorised to speak to the media.

With more than $130 billion in foreign exchange reserves and little foreign debt, Algeria is in better shape than other oil producers such as Venezuela.

However, it has been forced to push up taxes and increase subsidised petrol and diesel prices, scaling back a vast welfare system that has in the past helped ease social tensions. – Reuters CHINA’s eastern city of Nanjing said yesterday that it would restrict home purchases, according to a statement posted on the Nanjing government’s website, as the government tries to cool sharply rising home prices. Families not registered as residents and who own one or more houses in certain districts will not be allowed to purchase another home, either new or pre-owned. Nanjing residents who already own two or more houses in certain districts will not be allowed to purchase new homes. Nanjing is the newest second-tier city to introduce measures to restrict home purchases in response to surging home prices. Hefei, Suzhou, Xiamen and Hangzhou have introduced similar measures. The average new home price in 70 major cities climbed an annual 9.2 percent in August. – Reuters