10 January 2011 13:01 [Source: ICIS news]
DUBAI (ICIS)--SABIC’s polymer exports to Algeria are expected to fall by 10-15% this year because a new import payment regulation introduced in that market last week will deter import activity, a sales executive at the company said on Monday.
Under the new policy, an importer can only open a letter of credit (LC) for up to 59 days for transactions of more than $1,000 (€780), as local banks will not issue LCs for longer durations, said international polymers sales executive Abdulmajid Saeed Bin Saeed.
The new import payment regulation applies to all products and it is part of the Algerian government’s efforts to reduce the country’s imports, said Saeed.
He was speaking on the sidelines of the Arabplast exhibition in ?xml:namespace>
Prior to this latest regulation, an earlier policy introduced 16 months ago had banned payment terms such as open account, cash in advance and cash with documents, although local importers were still able to open LCs for up to 90 days, he said.
SABIC exported around 110,000 tonnes of polymers to Algeria and Tunisia last year, and its exports to Algeria consisted mainly of polypropylene (PP) grades such as injection and IPP, as well as film and injection grade high density polyethylene (HDPE), he added.
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