UAE scraps billions in Iraqi debt, names Baghdad envoy

0 Comments | AFP, July, 2008

ABU DHABI (AFP) — The oil-rich United Arab Emirates on Sunday waived Iraq's debt of nearly seven billion dollars and named an envoy to Baghdad, in a twin boost timed with a visit by Iraq's prime minister.

President Sheikh Khalifa bin Zayed al-Nahayan told Prime Minister Nuri al-Maliki the UAE has "decided to write off all debts owed by Iraq totalling four billion dollars... plus accrued interest," state news agency WAM reported.

An Emirati official, confirming the decision, told AFP the debt and interest amounted to just under seven billion dollars.

The UAE, a close US ally, also named its current envoy to India as ambassador in Baghdad, the official said.

Washington has been pushing its Arab allies to send ambassadors to Baghdad and ease Iraqi debt...