Iraq Funds Distribution Project
As a result of the ‘first Gulf War’ in 1990, Iraq defaulted on a US$480m trade debt owed to the Australian Wheat Board (Board) for wheat from three seasonal pools (1987/88, 1988/89 and 1989/90). The debt allocation across the pools was 3.87% (1987/88), 48.03% (1988/89) and 48.10% (1989/90). Growers in each affected pool recovered approximately 80% of the debt from the Australian Government Export Finance Insurance Corporation (EFIC).
In respect of each affected pool, the Board reported to growers that each pool was closed excluding the Iraq debt and records of grower entitlements would be preserved. In 1999, AWB (International) Limited succeeded the Board as national bulk wheat exporter under the former ‘single desk’ marketing arrangements, and more recently became Agrium Asia Pacific (International) Pty Limited (AAPI). AAPI now holds the relevant pool records.
Because EFIC paid the majority of growers’ losses, EFIC was entitled to, and did assume control of efforts to recover the balance of the Iraq debt owing to growers. It did so in concert with the Australian Government. In 2004, “the Paris Club” of national governments rescheduled Iraq’s total sovereign debt to Australia (including a proportion of the debt to growers being cancelled) and determined a repayment plan for the balance. It is now expected that approximately US$50 million, being the remaining portion of the Iraq debt, will be received annually by AAPI from 2012 to 2028.
AAPI has retained Ferrier Hodgson Corporate Advisory (FHCA) to manage and operate the process of identifying and contacting the growers who participated in the three pools, and distributing the instalments as sufficient funds are received from Iraq.
AAPI’s records show that eligible growers participated (either directly or via a share arrangement) in one or more of the 1987/88, 1988/89 and 1989/90 wheat pools and are therefore entitled to receive distributions.
These pools involved approximately 50,000 growers, so while individual distributions may be small, AAPI believes all growers should be offered their entitlements.
Approximately 25% of growers are projected to receive a total of AU$100 or less over the entire 17-year repayment period. Therefore, to reduce the overall administrative cost to growers in managing this process, AAPI decided to pay this group in full in the first distribution.
Distributions will be paid pro rata, based on the quantity of the wheat delivered by the grower into each pool. The amount available for distribution in each pool is calculated as the total dollars available for distribution, multiplied by the relevant season’s debt allocation percentage.
Eligible growers (or their beneficiaries) must complete a ‘Grower Details Form’ and return the signed form to:
Iraq Funds Distribution Project
C/- Ferrier Hodgson
P.O Box 16024
Collins Street West
Melbourne VIC 8007
If you believe you are eligible and haven’t received anything in the mail, please contact Ferrier Hodgson to substantiate your entitlement.
If you have any further questions, we encourage you to refer to the attached “Questions and Answers” sheet, email your query to email@example.com or call the IFDP Hotline on (03) 9604 5128. A copy of the Questions and Answers sheet and Grower Details Form can be downloaded below.
Eligible Growers - Change of Details
If you need to update your details (e.g. address, bank account), please download a "Change of Details Form" from the link below and return it to us.
IFDP made its first distribution to registered participants on 27 September 2012. For many participants this distribution is the first in a series anticipated to occur annually until 2028.
For growers whose total expected entitlement over the life of the project is less than AU$100, the payment made on 27 September 2012, represents their full and final payment.
On 15 December 2017 IFDP made its sixth distribution to registered participants.
It is expected that annual distributions will occur from 2012 through to 2028, subject to any variations in the timing and quantum of ongoing repayments from Iraq.
Accordingly, it is important that participants advise us of any changes in their address or bank account details that may occur over this period, to ensure they receive payment each year. A “Change of Details” form can be downloaded from the link below.
Eligible participants should continue to visit our website for further updates.
Tel: (03) 9604 5128
Fax: (03) 9642 5887