Moscow links its decision to write off $4.74 billion of Algeria's Soviet-era debt to Algiers' commitment to buy $7.5 billion worth of Russian arms, Interfax news agency reported on Saturday.
The debt write-off and Algeria's agreement to buy combat planes, air-defence systems and other arms from Russia were announced on Friday during Russian President Vladimir Putin's visit to the North African country.
"The debt will be written off after contracts on buying the Russian arms are signed and carried out," Interfax quoted an unnamed expert, who took part in preparing Putin's visit, as saying.
Algeria will buy 40 MiG-29 fighters, 20 Sukhoi-30 fighters, 16 Yak-130 training planes as well as eight S-300 PMU2 Favorit rocket systems and about 40 tanks.