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Compensatory Financing Facility

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Compensatory Financing Facility (CFF)
Entity that attempts to reduce the impact of export instability on country economies.


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Clear indications that Cairo will not choose to adopt an IMF compensatory financing facility, worth some $500 million initially, has dented what little confidence there was left in the market.
With respect to the two major compensatory financing schemes (the IMF'S Compensatory Financing Facility and the European Community STABEX system), the authors found only minor stabilization effects.
The IMF Compensatory Financing Facility would be more useful, it suggested, if it covered not only shortfalls in export earnings, but also deteriorations in terms of trade and sharp increases in interest rates.
 
 
 
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