Bank of Algeria halves foreign commitment limits for banks
via Algérie3602 min read
The Bank of Algeria has issued new instruction n°03-26, effective May 1, 2026, which significantly reduces the maximum foreign commitments for banks and financial institutions. This new regulation amends and supplements instruction n°02-2015, lowering the limit from 100% to 50% of a bank's regulatory own funds. Previously, a bank with 100 billion dinars in own funds could commit up to 100 billion dinars internationally; under the new rule, this will be capped at 50 billion dinars. This change will impact importers and cross-border financing, as banks will need to immediately revise their exposure to current and future import files. Financial institutions will see their capacity to issue guarantees or documentary letters of credit reduced by half. Importers may face refusals or delays if their reference bank's ceilings are already met. The measure covers all signature commitments related to import operations, after deducting guarantee deposits and provisions made in dinars for these operations. Governor Mohamed Lamine Lebbou's signing of this text signals the Bank of Algeria's intent to strengthen its supervision of external risks.
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