External Bank of Algeria Grants Sonatrach a Part of its Benefits
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External Bank of Algeria and Sonatrach will sign tomorrow Sunday on a new agreement of partnership that could notice the documentation of cooperation between the two institutions, the General Manager of the bank , Mohammed Loukal says.
This new agreement, which comes as an extension to another, signed by both parties in 2003 will establish “Terms of a close and professional relationship” between the oil company and the External Bank of Algeria, and within this context, the General Manager of the bank, told the APS; “It has become necessary to agree on a new kind of relationship that is successful for both parties, and ensure a permanent support in the field of providing services and creating a dynamic environment for the completion of current and future projects “.
According to the content of the agreement, the two institutions would set up a new mechanism for the management of cash that will allow them to share the benefits derived by the External Bank of Algeria to retrieve the liquidity by the Bank of Algeria. As Sonatrach will abandon a part of these profits according to the account that has been agreed upon, as part of valuing a share of the Sonatrach treasury.
The External Bank of Algeria is charged of recovering the fuel revenues to Algeria, that were directly abandoned by retrieval from the central bank, which is the only manager of Algeria’s exchange reserves of hard currency. As the agreement states in the new drafting of the application of more competitive pricing for Sonatrach, especially the benefits and commissions of financial operations, and conditions of investments in specific deadlines.
Algeria’s External Bank also undertakes the providing of quality services to its clients, in order to meet their various needs and requirements. Summarizing the content of the agreement by saying; “It aims to consolidate a special relationship between the bank and the company, that existed since the nationalization of hydrocarbons in 1971”.
“We seek to upgrade the relationship between the bank and the company to the level of a sêcial partnership that benefits from the events and opportunities offered by the energy sector and the banking system”, he added.
