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النهار أونلاين
Algeria Central Bank Issues New Directive
The Bank of Algeria has issued a new directive outlining the procedures for practicing factoring activities by banks and financial institutions, with the aim of organizing corporate financing and facilitating the transfer of commercial debts. The directive states that the factoring process involves transferring the commercial debts owed by clients to a bank or financial institution called the "intermediary," in exchange for an immediate payment of the amount, with the intermediary assuming the risk of non-payment in return for a fee. The process requires a written contract that includes details of the parties involved, the subject of the agreement, the rights and obligations of each party, the ceiling of obligations, and an assessment of the financial status of the member and debtor prior to signing the agreement. This is in line with the implementation of Regulation No. 26-03 dated August 13, 2026, aimed at organizing and improving the mechanisms for financing commercial enterprises through factoring.
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