DEBT OF ALGERIA, News update on the country debt situation, by East-West Debt

Despite its vast oil and gas resources, Algeria is burdened with $30 billion in foreign debt and a high unemployment rate.

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East-West Debt news, update oct. 2002: ALGERIA

We are pleased to present another issue of East-West Debt news update on the debt situation in the world. International events influence the solutions for solving overdue trade and bank debts. East-West Debt can offer our readers attractive financial solutions for solving non-performing trade and bank debts ...

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Algeria is trying to convince foreign governments and investors that security in the country is improving in order to get foreign aid and investment streams flowing, hoping they can help an ailing economy. Despite its vast oil and gas resources, Algeria is burdened with $30 billion in foreign debt and a high unemployment rate.

For instance, Japan has been considering earlier this year a first provision of full-scale Official Development Assistance (ODA) for Algeria, which should already start in 2003.

It would be the first full-scale ODA package for this country in more than a decade.

Japan considers sending an economic cooperation mission to Algeria as soon as possible to see if security conditions in Algiers and its surrounding areas have actually improved enough to make it possible for Japan to resume full-scale ODA. But the recent worsening of security conditions in and around the Algerian capital has temporarily stalled further consideration of the ODA package.

Since the early 1990s, Japan has refrained from providing full-scale ODA to Algeria because of the extremely poor security conditions in the North African country. The only official yen loan provided during the period consisted of 2 billion yen extended in 1996 as part of Algeria's debt rescheduling agreement with the Paris Club of creditor governments.

Full-scale resumption of ODA is important to that Arab nation as it could persuade risk-averse Japanese companies to follow the government and invest in Algeria. It is also important for Japan whose objective is to strengthen relations with the oil- and gas-rich country in the medium and long terms. Despite the fact that Japan imports almost all of the oil it consumes, it gets none from the North African country.

The Japanese move also comes as the United States administration of President George W. monetary regime is considering military assistance for the Algerian government as part of its global war on terrorism.

ALGERIA ARGENTINA BRAZIL EGYPT
INDONESIA IRAN IRAQ JORDAN NIGERIA PAKISTAN TURKEY UKRAINE URUGUAY VIETNAM

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