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| UAE waives billions of Iraqi debt | UAE waives billions of Iraqi debt |
| (30 minutes later) | |
| The United Arab Emirates has said that it is cancelling the entire debt owed to it by Iraq, a sum of almost $7bn (£3.5bn) including interest. | |
| The Gulf state also appointed a new ambassador to Iraq, in a move which eases Baghdad's diplomatic isolation. | The Gulf state also appointed a new ambassador to Iraq, in a move which eases Baghdad's diplomatic isolation. |
| The news was announced during a visit by Iraqi Prime Minister Nouri Maliki. | The news was announced during a visit by Iraqi Prime Minister Nouri Maliki. |
| Correspondents say Iraq's Sunni Arab neighbours have been wary of fostering ties with Iraq's mainly Shia government because of its links with Iran. | Correspondents say Iraq's Sunni Arab neighbours have been wary of fostering ties with Iraq's mainly Shia government because of its links with Iran. |
| Last month, the UAE's foreign minister became the highest-ranking official from an Arab nation to visit Iraq since the US-led invasion in 2003. | |
| The US has been pushing its Arab allies to send ambassadors to Iraq to bolster Mr Maliki's government. | |
| Soon after Mr Maliki arrived on his two-day visit, the UAE named its former envoy to India, Abdullah al-Shehi, as its new ambassador to Baghdad. | |
| Better relations | |
| The BBC's Jim Muir in Baghdad says the move is a welcome one for Iraq. | |
| Like other Sunni Arab states, the UAE had downgraded its representation in Baghdad, in part because of the security situation - a number of Arab diplomats had been kidnapped or killed. | |
| That downgrading also reflected unease that the Iraqi government seemed to be dominated by Shiites and Kurds, who are minorities in the wider Arab world, our correspondent says. | |
| But the recent Iraqi government crack-down on Shia militias, especially the Mehdi Army of Moqtada Sadr, has impressed Iraqi Sunnis, and their sympathisers beyond the borders, he says. | |
| This means the Baghdad government believes it is a good moment to push for better relations with the Arab states, our correspondent adds. | |
| In another sign that its isolation may be easing, the Iraqi government has said it expects a visit soon from Jordan's King Abdullah. | |
| He would be the first Arab head of state to visit Iraq since the 2003 invasion. |