The Diplomat
The Professional Association of Banks and Financial Establishments (ABEF), a key banking body in Algeria, announced late yesterday the lifting of restrictions on banking operations for foreign trade with Spain.
“I have the honour to inform you that, following the evaluation of the instruction described in this letter and in consultation with the foreign trade agents concerned, the precautionary measures mentioned above are no longer necessary,” the entity said in a statement issued last night, referring to the suspension of direct debits for goods and services to and from Spain decreed on 9 June 2022.
For its part, the Algerian bank issued another statement in which it clarified that “for the direct debiting of foreign trade transactions, it is up to the authorised intermediary banks to assess the inherent risks, taking into account in particular the quality of the trading counterparties, and to set appropriate measures for the mitigation of these risks”.
The ABEF had ordered a freeze as of 9 June on “direct debits related to foreign trade operations of products and services to and from Spain” as a consequence of the suspension of the Treaty of Friendship, Good Neighbourliness and Cooperation.
The measure led to a total blockade of trade between the two countries, with the exception of Algeria’s gas exports, which were not affected by the entity’s measure. Spain and Algeria are in the midst of an unprecedented diplomatic crisis due to the Spanish government’s about-turn on Western Sahara in March, when it supported Morocco’s proposal for autonomy within Morocco.
