Banks in Algeria: procedures for carrying out factoring set (instruction 09-2026)

What the text says

According to Radio Algerienne, the Bank of Algeria published instruction no. 09-2026 of 7 October. It sets the practical procedures for factoring by banks and financial institutions, under regulation no. 26-03 of 13 August 2026.

The dispatch says the operation starts with a request from the member (adhérent) to the factor. The request identifies the debtor and gives the information needed to assess the debtor's financial situation.

Contract and checks

Also according to Radio Algerienne, the instruction provides that the factor assesses the situation of the member and of the debtor before concluding the contract. Operations rest on a written contract signed by both parties.

The contract must contain at least certain clauses, including these:

• the express words "contrat d'affacturage" and the identification of the parties
• the purpose of the contract and the terms of subrogation
• the rights and obligations of the parties and the conditions of the factor's remuneration
• the duration of the contract and the identification of the debtor or debtors
• the factor's overall commitment ceiling and, where applicable, individual ceilings per debtor
• the conditions of termination and their effects on the financed receivables

Eligible receivables and transfer

According to the dispatch, the factor checks the eligibility of commercial receivables before any transfer. Eligible receivables are those held by members on debtors resident in Algeria.

The member sends the factor the invoices or equivalent documents with a summary slip. A subrogation receipt (quittance subrogative) is drawn up in two copies for each invoice or document financed.