Evening – Exporter financing terms from banks
The Bank of Algeria has issued a new instruction setting the conditions for financing approved intermediary banks, aimed at meeting treasury needs related to export operations for registered exporters listed in the commercial register, operating in the production and export sectors. Eligible transactions include documentary credit that is non-terminable or current documentary collection. Financing is provided through short-term loans in Algerian dinars covering the costs of purchasing goods, raw materials, manufacturing, and storage until goods are shipped. The documentation must include proof of the export process, such as a social security clearance certificate, invoice, export contract, and letter of credit, with verification that the product has been registered on the export platform within 7 days of receiving the application. The exporter commits to repaying the financing at maturity, with the possibility of extension, and to remitting the export proceeds to repay the loan. The exporter must also notify the bank of any events that could impact the process.
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