Bank of Algeria Details New Export Financing Conditions to Boost National Competitiveness
The Bank of Algeria has recently introduced new instructions, designated Instruction No. 2026-08, outlining the conditions under which accredited intermediary banks can finance the treasury needs of exporters. This pivotal development is part of the ongoing implementation of System No. 01-07, which governs current transactions with foreign entities and foreign currency accounts. The primary objective of these new guidelines is to reinforce Algeria's national export competitiveness by providing direct financial support to economic operators engaged in international trade.
Under the new framework, financing is specifically available for export operations conducted via irrevocable confirmed documentary credit or current documentary collection. Eligible entities include economic operators registered in the commercial register whose activity codes fall under Category 1 (Production) and Category 7 (Export). The financing takes the form of short-term loans, disbursed in Algerian Dinars by accredited intermediary banks, designed to cover immediate treasury needs directly linked to the execution of export operations. These needs encompass various stages, including the acquisition of goods for export, sourcing raw materials, manufacturing processes, packaging, and other related expenses up to the point of shipment.
The financing amount is determined by the intermediary bank, considering the exporter's specific treasury requirements, the nature of the export operation, and an assessment of credit risk. To access this financing, exporters are required to submit a comprehensive file that includes an updated commercial register, certificates of paid social security contributions, a current tax status certificate, an invoice from the producer marked "exportable," an export contract or order, a letter of credit document, transport documentation, and an export insurance guarantee. Intermediary banks are mandated to process applications within seven days of receiving a complete file and must verify that the product intended for export is listed on the dedicated export platform. Exporters, in turn, are committed to repaying the financing by the due date and repatriating export proceeds according to established terms, reinforcing the integrity and effectiveness of the new export support mechanism.
