Exporters Gain Direct Financing Through Bank of Algeria Initiative
The Bank of Algeria has issued new instructions establishing a mechanism for financing export operations, directly addressing the treasury needs of exporters. This initiative outlines the conditions under which accredited intermediary banks can provide financing to economic operators. Eligible entities are those registered in the commercial register with activity codes falling under production (site 1) and export/trade (site 7), signaling a targeted approach to bolster national exports.
Under the new directive, export operations will be financed through short-term Algerian dinar loans. These loans, provided by accredited intermediary banks, are specifically designed to cover treasury requirements directly linked to the execution of export processes. This includes the acquisition of goods intended for export, the supply of raw materials, manufacturing, packaging, and various expenses incurred up to the point of merchandise shipment. The financing amount and term are determined by the intermediary bank, based on the exporter's specific needs, the nature and completion cycle of the export operation, and an assessment of associated credit risks.
To access this financing, exporters must submit a comprehensive set of documents, including an updated commercial register, proof of settled status with national social security funds (CNAS and CASNOS), a cleared tax table extract, and a producer's invoice marked "valid for export." Further requirements include an export contract or signed order, documentation of an opened letter of credit, a transport document, and a guarantee from an export insurance company. Before granting financing, the intermediary bank is mandated to verify that the product involved in the export operation is registered on the dedicated export platform. Applications will be processed within seven days of receiving a complete file, with exporters obligated to repay the financing by its due date and repatriate export proceeds in accordance with agreed terms. This mechanism aims to significantly streamline and support Algeria's export sector.
