ALGERIA President Lamine Zeroual announces that he is to step down 18 months before the end of his five-year term in office. The resignation of Zeroual, a moderate who believes in accommodating Islamists rather than crushing them, undermines confidence in Algeria’s ability to end its civil war. A successor is to be elected next February.

MEXICO The Government’s bank- rescue programme to convert $65 billion in bad bank loans into public debt and open Mexico’s banks to unlimited foreign participation faces strong popular opposition.

NIGERIA New military leader, General Abubakar, continues his drive for a more democratic country by freeing 20 Ogoni minority activists who were imprisoned along with Ken Saro-Wiwa.

RUSSIA The country’s economic and political crisis deepens as the rouble collapses.The Duma clashes with Yeltsin and refuses for the second time his choice of Viktor Chernomyrdin as Prime Minister.

IRAQ In an historic event for both sides, leaders of two feuding Kurdish factions agree to a US-brokered accord stating they will share power in northern Iraq. Massoud Barzani of the Kurdistan Democratic Party and Jalal Talabani of the Patriotic Union of Kurdistan, whose bitter rivalry has frequently resulted in fighting, shake hands for the first time since 1994 and agree to share power and economic resources.

LESOTHO Hundreds of South African troops cross the border after growing unrest and looting in the capital Maseru.

BOLIVIA The World Bank, the IMF and the Inter-American Development Bank grant Bolivia $760 million in nominal debt-service relief.

MALAYSIA Anwar Ibrahim, the former Deputy Prime Minister recently sacked by leader Mahathir Mohamad, appears in court accused of corruption and sexual misconduct. His face is badly bruised, apparently from a beating while in detention. Mr Anwar was arrested after leading a big anti-Government demonstration. Rallies and protests continue, and concerns are raised internationally about the rule of law under Mahathir Mohamad.

BRAZIL Although Brazil has staved off the economic problems it feared for some time, the effects of the international financial crisis finally hit as shares plunge on the country’s stock market.

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