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Australia writes off Iraq debt
3 Jun 2004
The Australian Government and the grains industry have agreed to forgive most of Iraq's $US500 million ($A704 million) debt to Australia. The debt relates to $US480 million of wheat sales made to Iraq between 1987 and 1990. When Iraq defaulted, the Export Finance and Insurance Corporation covered 80 per cent of the total, which left Australia's wheat farmers about $100 million out of pocket.
Trade Minister Mark Vaile said yesterday the likelihood of recovering the amount owed to Australia is "very, very slight". He also announced the Government would provide $20 million to a grain handling facility in Iraq. Grains Council chairman Keith Perrett said wheat farmers would be disappointed by the debt decision, but support to the Iraqi grain handling facility allows Australia to build stronger relationships with key individuals in this market.
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