Algeria, Angola Others Still Owe $1.7bn In Foreign Airlines Blocked Funds – IATA

The International Air Transport Association (IATA) has highlighted Algeria, Angola, and Eritrea as countries that still owe foreign airlines a combined total of $1.7 billion in blocked funds, as of October 2024. This is a slight improvement from the $1.8 billion reported in April 2024. IATA’s data shows that nine countries account for 83% of these blocked funds, with Algeria owing about $193 million for 24 months, Angola $80 million for 24 months, and Eritrea $75 million for 96 months. Other significant debts include Mozambique, Pakistan, Bangladesh, and Lebanon, with countries in the XOF Zone also contributing to the total amount of blocked funds.

Of the $1.7 billion in blocked funds, $1 billion is concentrated in African countries, representing 59% of the global total. Pakistan continues to top the list with $311 million in blocked funds, although this is an improvement from $411 million in April 2024. Bangladesh has also seen a reduction in its blocked funds, dropping from $320 million to $196 million. IATA attributes these issues to delays caused by auditing and tax exemption certificate systems, and calls for central banks to prioritize airlines’ access to foreign exchange to fulfill international treaty obligations. Bolivia has also been added to the list of countries facing similar issues, with $42 million in blocked funds.

IATA’s Director-General, Willie Walsh, expressed concern over the increasing amounts of blocked funds in the XAF zone and Mozambique, despite improvements in some countries like Pakistan and Bangladesh. He urged governments to remove barriers preventing airlines from repatriating their revenues, as the continued withholding of funds could lead to the collapse of airlines and disrupt economies. Walsh warned that without the ability to repatriate funds, airlines may be forced to cease operations, ultimately affecting global aviation connectivity and economic prosperity.