The effect of changing interest rates on small and medium enterprises price-The experience of Algeria-

Abstract

The average interest is considered one of the most essential that make up the economy. Since it has a influence on the whole country as well as on the economics of firms which are considered as the major elements of economy because of the great role that play in economic life. That’s why the interest average may has influence on their policy and role since if there is any change can reflect directly on the economy  in general and on the public or private firms especially. Because of the evolution happened in interest average and in different sort of firms with its varieties, shapes dimension these later.

In the evolution of interest rates and the existence of different institutions in various shapes and sizes that requires them to seek new funding sources that adapt to their needs and help them implement their policies and achieve their objective of an effective and efficient manner, and this is the reality for Algerian institutions which try to follow the steps in the world economy and to keep developing world, so the Net change in the rate of interest has a direct effect on these institutions and their role in the national economy. Therefore the interest rate is a factor cuts both ways or it can contribute to supporting and activating the role of economic institutions, and can lead to a decrease in the role, or even bankruptcy.