Sydney, Dec 10: The International Air Transport Association (IATA) has reported that $1.7 billion in airline funds remain blocked from repatriation by governments worldwide as of October 2024.
While this marks a slight improvement from the $1.8 billion reported in April, the issue continues to challenge global aviation.
IATA highlighted notable progress in reducing blocked funds in Pakistan, Bangladesh, Algeria, and Ethiopia. However, increases have been recorded in the XAF and XOF zones, as well as Mozambique. Bolivia has emerged as a new problem area, with $42 million in airline funds blocked due to difficulties accessing foreign exchange, particularly the US dollar.
Willie Walsh, IATA’s Director General, expressed frustration over the ongoing issue, emphasizing the adverse impact on aviation connectivity and economic prosperity.
Pakistan remains the country with the highest amount of blocked funds at $311 million, though this figure has dropped from $411 million in April.
The delays stem from the country’s audit and tax exemption certificate system.
In Bangladesh, blocked funds have decreased from $320 million in April to $196 million.
The country’s central bank is urged to prioritize airlines’ access to foreign exchange in alignment with international obligations.
Africa accounts for 59 per cent of the total blocked funds globally, amounting to approximately $1 billion. While reductions were observed in Algeria and Ethiopia, significant increases occurred in the XAF Zone (+$84 million), Mozambique (+$84 million), and XOF Zone (+$73 million).
IATA reported that nine countries are responsible for 83 per cent of the blocked funds, totaling $1.43 billion. These include nations in the XAF Zone (Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon) and XOF Zone (Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, Togo).
The issue poses a critical challenge for airlines, with Walsh cautioning that the inability to repatriate funds jeopardizes aviation services and the economies dependent on them.
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.