Algeria retracts a banking decision against Spain

The Professional Association of Banks and Financial Institutions (ABEF), a major banking organization in Algeria, announced the “lifting of restrictions on banking operations related to foreign trade with Spain.”

The Algerian banking entity said in a statement, in reference to the decision to suspend banking transactions for goods and services to and from Spain issued on June 9, 2022: “After evaluating the instructions outlined in this letter, and in consultation with the affected foreign trade agents, the mentioned precautionary measures are no longer necessary.”

For its part, the Bank of Algeria issued another statement in which it clarified that “for foreign trade operations, it is up to the intermediary banks authorized to assess the inherent risks, taking into account, in particular, the quality of commercial transactions, and to put in place appropriate measures to mitigate these risks,” as he put it.

The Algerian Association had decided to freeze banking transactions related to foreign trade operations of products and services to and from Spain, as of June 9, as a result of the suspension of the Treaty of Friendship, Good Neighborhood and Cooperation.

The measure caused a freeze on trade between the two countries, with the exception of Algerian gas exports, which were not affected by the banking entity’s procedures.

It is noteworthy that Spain and Algeria are going through an unprecedented diplomatic crisis due to the shift in the position of the Spanish government last March on the issue of the Moroccan Sahara, through Madrid’s support for the Moroccan proposal for autonomy explicitly and clearly.

By safiremedia

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