Last Friday, 29 July, the Algerian banking employers association (ABEF) reversed the decision taken on 9 June. blocking financial transactions with Spain. Hours later, however, the Algerian government changed the letter sent to ABEF, pointing out that trade was a government mandate, and erroneously dismissed any mention of trade resumption.
This surge as a result of the internal division in the country is causing confusion among Spanish companies. companies are silent and they continue to wait for the situation to reverse. Salvador Navarro, vice president of the CEOE and head of the Valencian Community Business Confederation, asked the two countries to “show flexibility and diplomacy to overcome their differences, given the current trade flow”.
It has included the European Union as an “ally” in its search for a definitive solution. They admit that they have expectations from the Confederation, the Algerian Ruler. “We comfortably received the announcement from Algerian banking employers that they were lifting restrictions on banking transactions for foreign trade with Spain, but the backing of Algerian authorities has increased distrust.” “The situation is uncertain and will arouse more suspicion in companies in their commercial relations”, concludes Salvador Navarro.
The Ministry of Industry, Trade and Tourism, for its part, “has been monitoring the situation of Spanish companies in this market comprehensively and standardization of business activities will take place as soon as possible” Its task is to inform national companies of the situation by coordinating its activities with the Ministry of Foreign Affairs.
Up to 140 Spanish companies work with Algeria, among which Vicky Foods, the first pastry company in the country through its subsidiary, stands out; GB Foods, which has a factory there; Naturgy, Cepsa or Repsol. Construction companies like the FCC denied that this diplomatic crisis could alter their income statements, as the weight of the country’s business is minimal.