Egypt forgives Iraqi debt in exchange for oil
During Iraqi Prime Minister Haider al-Abadi’s visit to Cairo, the Egyptian government agreed to drop the Iraqi debt owed to Egypt, in exchange for oil shares that would come in handy in light of the energy crisis plaguing Egypt.
CAIRO — Iraqi Prime Minister Haider al-Abadi’s visit to Cairo on Jan. 11 included several political, military and economic agreements, and marked a new chapter in Egypt-Iraq relations. These agreements also contributed in expanding the cooperation areas to confront the Islamic State (IS), which, according to the Egyptian government, are a threat to its national security.
“There was an agreement to solve all outstanding issues between the two countries, especially the issue of the Iraqi debt owed to Egypt,” an Egyptian government official told Al-Monitor on condition of anonymity.
The source, who attended Abadi’s talks with two Egyptian officials, said: “We suggested dropping the Iraqi debt in exchange for Iraqi oil shares. The concluded economic agreements also included resending Egyptian workers and contracting companies to Iraq.”
The issue of Iraq's debt has been plaguing the Iraqi-Egyptian relationship since the Central Bank of Iraq refused to pay $1.7 billion to Egypt.
