Event

Algeria has eased its restrictions on the payment of imports of goods in the country, allowing payments by documentary collection (remise documentaire). The new finance law (Loi de Finance 2014) that included the amendment was published on 31 December. The Algerian law had imposed the use of ILCs for the import of goods into the country since 2009, though amendments in 2011 allowed for the use of other payment methods under specific conditions.

Impact on country risk

Country risk is not immediately impacted by the recent amendment. Despite the ILC requirements since 2009, imports in Algeria have continued to boom. Last year, Algerian imports were more than 40% higher than they were in 2008, the year before the ILC requirements came into being. The recent amendment is likely to somewhat facilitate exports to Algeria. This is a welcome development in a country that traditionally has a rather difficult business environment. The World Bank’s ease of doing business index ranks Algeria among the worst in the Middle East and North Africa.

Analyst: The Risk Management Team, r.cecchi@credendogroup.com