Economic Operators Gain Access to Export Dinar Credits
The Bank of Algeria has introduced a new measure designed to enhance banking support for economic operators and facilitate non-hydrocarbon export operations. This initiative allows exporting companies to access bank financing specifically to cover their treasury requirements directly linked to the execution of their export activities. The new framework aims to bolster the role of banks in assisting relevant operators, thereby contributing to the diversification of the national economy.
Under the new instruction from the Bank of Algeria, the financing for export operations is provided as short-term credits denominated in Algerian dinars, issued by approved intermediary banks. These funds can be utilized to finance various stages of the export process, including the acquisition of goods for export, the procurement of raw materials, manufacturing, packaging, and other expenses incurred up to the point of shipment. The facility is exclusively applicable to export operations conducted via an irrevocable and confirmed documentary credit or a sight documentary remittance, benefiting economic operators registered in the commercial register under production (position 1) or export and trading (position 7). Intermediary banks are tasked with determining the financing amount based on the exporter's treasury needs and their credit risk assessment, with the Bank of Algeria setting a maximum seven-day period for credit application review upon receipt of a complete dossier.
Exporters seeking this financing are required to present a comprehensive dossier, including an updated commercial register, social security compliance documents, a cleared tax certificate, and a producer invoice confirming product availability and marked "valid for export." Additional documents such as an export contract, purchase order, transport documents, and proof of letter of credit opening are also necessary, alongside an export insurance guarantee. The approved intermediary bank must verify the product's referencing on the dedicated export platform before granting the financing. Exporters are obligated to repay the financing by the agreed due date and repatriate the proceeds of the export operation according to prevailing regulations. This latest measure follows previous efforts by the Bank of Algeria, including the end-of-July directive setting a maximum 48-hour deadline for domiciliation of export operations, reinforcing the overall mobilization of approved intermediary banks in supporting Algeria's export drive.
