Al-Jazeerah
January 21, 2004

Abu Dhabi: Qatar said yesterday that it would waive most of the $4 billion or so Iraq owes it and will consider writing off the rest.

“The state of Qatar will forgive most of the debts Iraq owes it and will consider waiving the remaining amount at a later, more appropriate time,” a Qatar Foreign Ministry official said following talks between Crown Prince Sheikh Tamim ibn Hamad ibn Khalifa Al-Thani and the US envoy James Baker.

“Reducing debt in 2004 is a crucial and defining issue and provides Iraqi people a chance to build a free and prosperous country,” the Qatari official told the state news agency QNA.

Iraq owes Qatar about $4 billion that has accrued since the 1980s, another official told Reuters news agency.

Iraq is estimated to owe Gulf countries $45 billion, mostly money given to Baghdad during its 1980-1988 war with Iran. Iraq insists the money from Gulf states was given as grants.

Baker also visited the United Arab Emirates’ capital Abu Dhabi yesterday on his tour to secure pledges to reduce Iraq’s debts and met Abu Dhabi Crown Prince Sheikh Khalifa ibn Zayed Al-Nahayan who said his country also wanted to help Iraq, but did not refer directly to the debt issue.

“The United Arab Emirates understands the US envoy’s task . . . and is doing its best to support the Iraqi people in achieving security, stability and a comfortable life,” Sheikh Khalifa said in remarks carried by the official news agency WAM.