Introduction

Commercial relations between Italian companies and Algerian partners represent a significant component of trade between Europe and North Africa, particularly in the energy, raw materials, and infrastructure sectors. However, as in other international contexts, commercial exchanges with Algeria may also give rise to unpaid receivables requiring the activation of debt recovery strategies, both extrajudicial and judicial. The peculiarities of the Algerian legal framework mainly derive from the French origin of its civil law system, integrated with certain local specificities and the formal predominance of written law, as codified in the Civil Code and the Code of Civil and Administrative Procedure published in the Official Journal of the Algerian State (Journal Officiel de la République Algérienne Démocratique et Populaire).

As a general rule, the Algerian legal system does not allow the direct application of foreign law in court (unless contractually agreed and not contrary to local public order). Therefore, where legal proceedings are initiated in Algeria for debt recovery, Algerian law will govern the procedure.

Regulatory Framework of Civil and Commercial Law

In Algeria, private law is largely inspired by the French civil law model. The main rules governing contractual relationships and the rights and obligations of the parties derive from the Algerian Civil Code, originally enacted by Ordinance No. 75-58 of 26 September 1975 and subsequently amended and supplemented by various legislative reforms over the following decades.

At the same time, commercial activities and relations between economic operators are also governed by specific provisions contained in the Commercial Code, adopted by Ordinance No. 75-59 of 26 September 1975. This body of law regulates commercial obligations, contracts between merchants and insolvency proceedings.

The regulation of payment terms, contractual relationships and the conditions agreed between the parties is largely left to their autonomy, provided that such agreements do not conflict with mandatory provisions of Algerian law. In commercial contracts, payment terms are generally determined by the clauses agreed upon by the parties and, in the absence of any agreement, the general rules of the Civil Code and the Code of Civil Procedure apply.

Preliminary Steps in Debt Recovery

In the context of debt recovery in Algeria, as in any jurisdiction, it is essential to correctly identify the debtor and to verify the existence and validity of the claim on which the credit is based. These activities include reviewing the contractual terms governing the commercial relationship (where applicable), examining accounting and customs documentation, and collecting all the evidence proving the existence and the amount of the outstanding debt.

Before initiating any judicial debt recovery action in Algeria, it is also essential to understand the procedural and cultural specificities of this jurisdiction. Algerian commercial and legal practice often favors a conciliatory approach. It is therefore advisable to attempt an amicable settlement of the dispute through formal reminders and direct contact with the debtor (or its legal representatives) before resorting to the courts. Such contacts usually consist of sending formal payment demands, default notices and reminder letters containing a formal request for payment within a fixed deadline, generally ranging between 8 and 15 days depending on the circumstances. In practical terms, attempting mediation through professionals who are familiar with Algerian commercial practices and business culture is strongly recommended.

This preliminary step is not only considered good contractual practice, but in many cases also constitutes a substantive and procedural requirement for the admissibility of subsequent legal action. In fact, Algerian legislation generally requires that the debtor be formally notified of the default and invited to perform its obligations within a reasonable period before civil proceedings may be initiated.

This approach may be carried out either from Italy or directly at local level in Algeria.

From a strategic perspective, before commencing litigation it is also crucial to assess any factors that may affect the choice of the competent forum, the language of official communications (typically Arabic or French), and the debtor’s financial standing within Algeria. All these elements may significantly influence the course of the proceedings, the time required for debt recovery, and the actual enforceability of any favorable decision.
 

Judicial Debt Recovery

When extrajudicial recovery efforts prove unsuccessful, the next step consists in initiating judicial proceedings before the competent judicial authorities in order to obtain a formal recognition of the claim and the issuance of an enforceable title.
As a preliminary matter, it is necessary to verify whether the parties have entered into written contractual agreements containing a jurisdiction or arbitration clause. Where the agreement expressly designates a competent forum – which may be a state court (for example, an Italian or Algerian court) or an arbitral institution (such as a chamber of commerce) – the parties are bound to bring the proceedings before the designated authority, failing which the court or arbitral tribunal seized may declare itself incompetent. The contractual choice of forum is therefore of decisive importance, as it affects not only the place of the proceedings, but also the language of the proceedings, the applicable law and the overall duration of the dispute.

The Algerian legal system provides for both ordinary judicial proceedings for debt recovery and a simplified special procedure (often comparable to a “payment order” procedure), which allows an enforceable title to be obtained where there is clear and uncontested documentary evidence of the debt. Through this mechanism, the creditor may request the court to issue a payment order based on documents such as invoices, contracts or accounting records evidencing the obligation. In such cases, the court examines the application and issues the payment order within relatively short timeframes, and the order becomes enforceable if the debtor does not file an objection within the statutory deadline.

In ordinary proceedings, by contrast, the creditor brings a civil action before the court having jurisdiction over the place where the debtor has its registered office or domicile. The claim is based on proof of the existence of the debt and the legitimacy of the action, with the burden of proof resting on the creditor, who must file with the court all documentary evidence supporting the claim (i.e. contracts, invoices, commercial correspondence, etc.). The judge assesses the facts and the evidence and, where the creditor’s claim is found to be well-founded, issues a judgment ordering the debtor to pay. At this stage as well, the assistance of a lawyer or a duly qualified legal representative in Algeria is strongly recommended in order to ensure compliance with the applicable rules on jurisdiction and procedural formalities.

It should be noted that, as in many civil law jurisdictions, the introductory phase of judicial proceedings is subject to strict formal requirements as to the time limits and the manner of service of procedural documents. In particular, a minimum period must elapse between service of the claim and the first hearing, and the formal rules governing the filing of pleadings and evidence must be observed.

Special attention must be paid by foreign creditors to the regime governing the recognition of foreign judgments. In Algeria, foreign court decisions are not automatically recognised nor immediately enforceable. In order for a judgment issued by a foreign court, such as an Italian court, to produce enforceable effects in Algeria, a specific judicial recognition procedure (so-called exequatur) must be initiated before the Algerian authorities, following verification of the applicable judicial cooperation agreements between the two countries. This procedure does not involve a review of the merits of the case, but aims to verify that the foreign judgment was rendered in compliance with due process, does not conflict with Algerian public order, and meets the formal requirements laid down by local law. Only after such recognition may the foreign decision constitute a valid enforceable title in Algeria.

It should also be noted that Italy and Algeria are parties to the “Convention on Judicial Assistance in Civil and Commercial Matters”, signed in Algiers on 22 July 2003 and ratified by both States. This Convention governs the recognition and enforcement of judicial decisions and arbitral awards, subject to compliance with specific requirements concerning jurisdiction, procedural regularity, respect for the adversarial principle, and compatibility with domestic public order.
Once a valid enforceable title has been obtained, whether in the form of an Algerian judgment or a recognised foreign decision, the creditor may proceed with enforcement measures against the debtor, including the seizure of movable assets, the freezing of bank accounts or other measures provided for under local law.

At the enforcement stage, a central role is played by the huissier de justice, a figure comparable to the bailiff, but organised under a different model from that in Italy. In Algeria, the huissier is an independent professional operating on a private basis, who must be directly appointed by the creditor in order to carry out service of documents, seizures and other enforcement activities. Unlike the Italian UNEP (Ufficio Notifiche, Esecuzioni e Protesti), which is an internal office of the judicial system, the Algerian huissier operates as an autonomous professional while exercising public functions conferred by law.

Practical Considerations

In debt recovery proceedings in Algeria, the effectiveness of the action largely depends on the choices made at the initial stages of the contractual relationship. The inclusion of a jurisdiction or arbitration clause, as well as the identification of the applicable law, may have a decisive impact on the duration, costs and actual enforceability of a favorable decision. In the absence of such contractual arrangements, foreign creditors are often required to bring their claims before Algerian courts and to comply with local legal formalities, including, where applicable, the procedure for the recognition of foreign judgments.

Another relevant aspect in the field of debt recovery concerns limitation periods. Algerian law provides, as a general rule, a fifteen-year limitation period for civil actions arising from contractual obligations, subject to special provisions applicable to specific categories of claims. This period may be interrupted by formal interruptive acts (such as reminders and formal payment demands) or by the debtor’s acknowledgment of the debt. In any event, it is advisable not to delay the initiation of recovery procedures in order to avoid evidentiary and practical difficulties

Conclusions

Commercial debt recovery in Algeria requires a thorough understanding of the local legal system, which is based on civil and commercial law of French origin, as well as on the relevant rules of civil procedure.
The influence of Islamic law is mainly limited to areas other than commercial matters, such as family law and personal status. This allows international economic operators to operate within a legal framework that is generally predictable with regard to contractual obligations and debt recovery.

Enrico Ruggeri 
de Capoa Law Firm