The Bank of Algeria has issued new instructions detailing the framework for factoring activities conducted by banks and financial institutions, aligned with the regulation No. 26-03 dated August 13, 2026. Signed by Governor Mohand Bouray on October 7, the directive outlines the legal procedures for an adherent to transfer commercial debts to a financial intermediary for immediate payment, with the latter assuming non-payment risks. The agreement requires a written contract specifying the obligations, identities of the parties, financing ceilings, and termination clauses. Intermediaries are obligated to assess the financial standing of both the adherent and the debtor before any transfer. Eligible commercial debts must involve debtors residing in Algeria, and all claims must be supported by invoices and documented proof to ensure the legal transfer of rights and associated guarantees to the financial institution.