Low oil prices will not stop strategic capital projects in Algeria, according to Mohammed Jallab, the country’s finance minister.

“A number of projects have been programmed to be funded through the money market to ease pressure on the state budget and increase its potential to finance some projects,” he said, speaking on national television.

“Projects included in the government’s project programme, especially in housing, farming, education and health will not be affected.”

In May, the Washington-headquartered IMF forecast that Algeria would run a fiscal deficit worth 2.9 per cent of GDP in 2015, putting pressure on the country’s finances.

The deficit is now likely to be larger, due to recent declines in global oil prices.

Brent has lost more than 30 per cent of its value since June and analysts have warned that the prospect of a price recovery is weak due to oil producers group Opec’s decision to keep production levels of 30 million barrels a day (b/d).