The government of the United Arab Emirates will settle Dh2 billion ($544.5 million) of debt owed by nationals, the state news agency WAM said on Wednesday.

Sheikh Khalifa bin Zayed Al-Nahayan, president of the UAE, ordered the settlement of non-performing loans of citizens whose debt does not exceed Dh1 million, the agency reported.

Debt will be paid by the government and borrowers will be released under the condition that 25 per cent of their salaries will be deducted until the debt is paid back.

The move applies to both people who are detained for defaulting on debt or have agreed to settle their debt through scheduled payments.

A total of 6,830 citizens of the Gulf state will benefit from the decision. – Reuters