Algeria bails out Zimbabwe

Zimbabwe is to receive a US$900 million bailout from Algeria for arrears clearance, ahead of a crucial International Monetary Fund (IMF) board meeting on the country scheduled for Monday.

The IMF board meeting is expected to pave way for a debt clearance strategy, which government said this week would be completed between September and October.

Zimbabwe is working on a plan to clear at least US$1,8 billion in arrears to the IMF, the World Bank and the African Development Bank (AfDB).

An Algerian embassy official confirmed the deal with Zimbabwe, but said this was being handled in Algiers, the Algerian capital.

Government sources said Zimbabwe had turned to Algeria because it could give cash. They indicated that the so-called all-weather friend, China, did not lend cash to extricate its allies from debts.