Algeria unblocks banking operations with Spain

The Professional Association of Banks and Financial Institutions (Abef) of Algeria announced late Thursday the unblocking of banking operations with Spain, more than 50 days after Algiers announced the freezing of all transactions with Spanish banks.

In a missive sent to the general managers of Algerian banks and financial institutions, the Abef has detailed that “the aforementioned precautionary measures no longer apply”, thus rendering ineffective the ban on banking operations with Spain.

“I have the honor to inform you that, following the evaluation of the system described in this letter and in consultation with the foreign trade agents concerned, the precautionary measures (in relation to Spain) mentioned above are no longer necessary,” reads the statement from the Algerian employers’ association.

The unblocking of banking operations between Algeria and Spain will make it possible to resume trade relations between the two countries following the mediation of the European Union, which warned Algiers that it was prepared to “face any type of coercive measure” taken against one of its member states.

This reversal followed a 50-day freeze on direct debits from Algeria to Spanish foreign trade which the Maghreb country announced on June 9, following the decision to suspend its friendship treaty with Spain because of its “unjustifiable” turn on Western Sahara.

The Algerian authorities reproach the Spanish authorities for the campaign undertaken to try to argue a political turn which, according to them, is a “violation of the legal, moral and political obligations” of what remains the “administering power” of Western Sahara.

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