Confirming Bank for Algeria LC

[HSHS]

Hello.

I am trying to open a new trade to ALGERIA and made a contact to one partner recently.
The buyer will open LC with CPA,
but my account adviser told me that I need CONFIRMING BANK only to secure the payment.

I heard that ALGERIA GOVERNMENT handles final confirmation for the LC and transaction will take place only after government confirmation.

In this case, I wonder whether requesting Confirming bank can do anything.
Even if with confirming bank, can confirming bank really guarantee payment if the government holds the payment?

Please kindly let me know...

[picant]

Hi Pal,

I know companies in Italy that operate with Algeria currently, with unconfirmed l/c.
That may be risky, it depends on the issuing bank, applicant etc.
IMHO, it is not the government that holds the money, buyer must create a cash collateral for 120% of the import value and there is a list of goods that may be imported-
Every december the Algerian Goverment updates the requirements for import for the next year.
You may visit some algerian banks website or economic newspaper i.e www.letemps.dz etc
Your bank may advise you correctly. I inserted in this forum issue concerning Algeria, find them and contact the algerian people that resonded.
Ciao