Iraq debts cancelled

The United Arab Emirates has cancelled billions of dollars of Iraqi debt and moved to restore a full diplomatic mission in Baghdad, evidence of Iraq’s improved security and growing acceptance of its Shiite-led government.

The Abu Dhabi government announced the debt relief and the naming of a new ambassador to Baghdad shortly after Iraqi Prime Minister Nouri al-Maliki began a visit to the wealthy Gulf nation on Sunday.

The news is sure to bolster Mr al-Maliki’s government, which has been urging Iraq’s Sunni Arab neighbours to forgive loans made during Saddam Hussein’s regime and restore diplomatic relations.