Zimbabwe, Libya in fuel deal

Harare - Zimbabwe's government has reached a $360 million deal with Libya in which the north African country will provide desperately…

Harare - Zimbabwe's government has reached a $360 million deal with Libya in which the north African country will provide desperately needed fuel in exchange for Zimbabwean exports, the weekly Financial Gazette reported.

Citing unnamed senior government officials, the paper said Zimbabwe's President, Mr Robert Mugabe, and the Libyan leader, Col Moammar Gadafy, finalised the agreement during Gen Gadafy's trip to Zimbabwe last week.

Under the deal, the Libyan Arab Foreign Bank will release the money in quarterly installments of $90 million, the paper said. Zimbabwe will finance its purchases through exports to Libya.