Algerian banks resume direct debits with Spain despite Algiers disallowance

The unblocking of trade relations between Spain and Algeria is a fact, Algerian sources assure this newspaper. Direct debits were reportedly resumed on Monday in order to be able to import and export products to and from Spain, according to the president of the Algerian-Spanish Circle of Commerce and Industry, Djamel Eddine Bouabdallah.

Despite the communiqué issued on Sunday by the state news agency APS, which disavowed the circular issued last week and signed by the president of the Association of Banks and Financial Institutions (ABEF), Rachid Belaid, notifying the directors of banking institutions of the unfreezing of exports, the thirty or so banks belonging to this organisation will proceed to lift the ban gradually over the course of this week.

The strategy of Abdelmadjid Tebboune's government sought to reinforce Algiers' political stance on Spain's decision to recognise the Moroccan autonomy plan as the "most serious, realistic and credible" basis for resolving the Western Sahara dispute. According to this version, the contradictions of the last few hours respond to the Algerian government's intention to send a clear message: the normalisation of economic relations does not bring with it a recovery of diplomatic relations.

In June, Algiers withdrew its ambassador in Madrid and announced the suspension of the Treaty of Friendship and Good Neighbourliness, in force since 2002, a decision that broke the framework of cooperation with the European Union. This measure froze banking operations between Spain and Algeria and made fluid trade impossible, the volume of which exceeds 6 billion a year, according to figures from 2021.

The unclear terms and conditions of the blockade undermined Algerian business and led to a series of misunderstandings at customs. It was unclear which course of action the authorities would allow. As a result, the first doubts arose within the Algerian government and President Tebboune decided to dismiss the finance minister, Abderrahmane Raouya, who was in charge of ABEF and directly responsible for the trade crisis with Spain. But the measure was not enough.

Finally, on Thursday, a circular signed by the president of Algeria's main commercial institution came to light, decreeing the lifting of the blockade two months after its imposition. The note, addressed to local banks and financial institutions, formalised the return to normal trade with Spain.

"Following our aforementioned letter, I have the honour to inform you that, following the evaluation of the system mentioned in this letter, and in consultation with the foreign trade agents concerned, the precautionary measures mentioned above are no longer necessary", the letter stated.

48 hours after the issuance of this circular, perceived internally as a withdrawal, the Algerian state chose to attack the Association of Banks and Financial Institutions: "The ABEF, to which these media refer, continues the APS, cannot replace the state institutions in charge of finance, the economy and foreign trade. It is a professional association and defends the interests of its members". This week, however, trade is likely to resume.