Iraq said on Saturday it had agreed to pay $408 million to hundreds of thousands of Egyptian workers who fled Iraq because of Saddam Hussein's 1990-91 invasion of Kuwait.
Iraqi Foreign Minister Hoshiyar Zebari signed a memorandum of understanding during a visit to Egypt this week, his office said, under which Baghdad agreed to make the payments to resolve the cases known as "yellow remittances".
Hundreds of thousands of Egyptian workers are still owed back pay after fleeing Iraq following Saddam's invasion of Kuwait.
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