The Bank of Algeria has broadened payment terms for non-hydrocarbon exporters dealing with non-resident clients, according to Regulation No. 26-02 dated July 23, 2026. This measure permits exporters to extend payment terms up to 180 days, or six months, significantly expanding the margin for these businesses. The central bank's initiative aims to provide greater flexibility for Algerian companies engaged in international trade outside the hydrocarbon sector. For payment terms exceeding 120 days, export credit insurance is a mandatory requirement, providing a key safeguard for these extended periods. The new Article 61 of the regulation details these rules, stipulating that exporters must repatriate the full transaction value on the day it is received from the foreign client. This ensures timely and complete return of funds to the national economy.
New Payment Term Details
The base payment term for non-hydrocarbon exports remains 120 days. This standard period is maintained to ensure a consistent framework for most transactions. For goods, this 120-day term is calculated from the date of shipment, providing a clear starting point for the payment cycle. When dealing with services, the 120-day term is calculated from the date of completion of the service, aligning the payment period with the delivery of the service itself. This distinction between goods and services clarifies the application of the payment terms.
The maximum payment term allowed for all transactions is 180 days, setting a definitive upper limit for payment extensions. The specific payment term agreed upon for each transaction must be explicitly stated within the commercial contract between the Algerian exporter and the non-resident client. This contractual clarity is essential for both parties. The option to extend the payment term beyond 120 days, up to the 180-day maximum, is linked to a specific guarantee tool. This extended payment term necessitates the use of export credit insurance to cover the transaction, thereby mitigating potential risks for the Algerian exporter and the national financial system. This insurance requirement is a key component of the new regulatory framework, balancing flexibility with financial prudence.
Regulatory Context and Amendments
The new regulation from the Bank of Algeria amends and complements Regulation No. 07-01, which was originally dated February 3, 2007 (corresponding to 15 Muharram 1428 AH). This updated framework introduces more flexible terms for Algerian non-hydrocarbon exporters engaging with international clients, marking a significant adjustment to the existing financial regulations. These adjustments aim to streamline export processes and potentially boost Algeria's non-oil and gas trade by making its exporters more competitive in global markets. By revising the existing regulatory landscape, the Bank of Algeria seeks to provide a more conducive environment for businesses looking to expand their reach in global markets. The changes particularly focus on facilitating smoother payment cycles for goods and services exported from Algeria, responding to the needs of exporters who often face varied payment practices internationally. This move is part of broader efforts to diversify the national economy and reduce reliance on hydrocarbon revenues, fostering growth in other key sectors. The central bank's proactive stance underlines a strategic shift towards supporting a more strong and diversified export base.
Key Obligations for Exporters
Exporters must ensure the full value of the transaction is repatriated to Algeria on the exact day it is received from the foreign client, as stipulated by the Bank of Algeria. This requirement applies to all non-hydrocarbon exports, regardless of the payment terms agreed upon, reinforcing the principle of immediate repatriation of foreign earnings. The regulation mandates that the specific payment term, whether 120 days or an extended period up to 180 days, must be explicitly detailed within the commercial contract established between the Algerian exporter and the non-resident client. This contractual obligation ensures transparency and legal clarity for all transactions. For transactions utilizing payment terms exceeding 120 days, exporters are obligatorily required to secure export credit insurance. This insurance serves as a guarantee for the transaction, mitigating risks associated with longer payment cycles for goods and services exported from الجزائر. This mandatory insurance provides a layer of security, safeguarding the financial interests of Algerian exporters and the country's economy. The framework shows the central bank's commitment to maintaining financial control while fostering export growth and providing a secure environment for international trade.