Algeria is considering ditching a recent law making it compulsory for importers to use letters of credit (L/Cs).

The move follows robust lobbying against the law by Algerian traders.

Presentation

Finance minister Karim Djoudi has now presented the Algerian cabinet with two draft bills relating to the 2010 supplementary budget law and the monetary and credit law.

At the heart of these drafts is a proposal to suspend the compulsory use of L/Cs to import goods.

If the law is ratified, importers will no longer have to open L/Cs up to the value of two million Algerian dinars.

Amendments

The Algerian government enacted amendments to the country's finance law so that it required importers to use L/Cs nearly a year ago, (DC World News, 12 August 2009).

The amendments considered at the time by many as drastic and severe formed part of Algeria's mid-term complementary finance law for 2009.

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