AUAE writes off four billion dollar in Iraqi debts

Nicosia, July 18 : Saikh Khalifa bin Zayid al-Nuhayyan, the President of the United Arab Emirates, has recently announced that the UAE has cancelled the entire debt owned to it by Iraq, amounting to four billion dollar, including interest and arrears payments.

The United States and the Iraqi Prime Minister Nouri Maliki have been urging Iraq's Arab neighbours to join Western nations and forgive their share of Baghdad's outstanding foreign debts that total up to 80 billion dollar.

In another political gesture, the UAE announced the appointment of a new Ambassador to Baghdad. He is Abdullah al-Shehi, UAE's former envoy to India.

The majority of Arab states had downgraded their diplomatic representations in Iraq, mainly as a result of the precarious security situation in the country and to show their displeasure with the domination of the Baghdad government by Shites and Kurds.

Recently however, the government of Nouri Maliki has embarked on a campaign to reign in Shia militias, a move that was welcomed by Sunni Arab governments.

ANI