More good news from Iraq: United Arab Emirates cancels Iraq's $7 billion debt

Signaling Sunni-dominated Arab nations are beginning to trust the Shia-dominated government of Iraq, Iraqi Prime Minister Nuri al-Maliki announced the United Arab Emirates has forgiven $7 billion in debt. CNN:

Dubai has forgiven the nearly $7 billion Baghdad owes it, Iraqi Prime Minister Nuri al-Maliki announced Sunday.

UAE President Sheikh Khalifa bin Zayed Al Nahyan promised to "put out these debts," appoint an ambassador to Baghdad, and "help Iraq building the holy shrines that were targeted by the terrorists," al-Maliki said in a written statement.

Al-Maliki and the sheikh met Sunday, the first day of a two-day official visit. Al-Maliki was accompanied by the Iraqi ministers of Interior, Commerce and Industry.

"Our biggest challenge is now the reconstruction and rehabilitation of the economic situation and to provide services to our citizens," al-Maliki said.

Debt relief is a major issue for Iraq, and the United States has urged other nations to forgive Iraqi debt, most of which is held by Arab states, U.S. Deputy Treasury Secretary Robert Kimmitt said in late May.

Hat tip: Ed Morrissey
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