Compensatory and Contingency Financing Facility
Compensatory and Contingency Financing Facility : The CCFF is an International Monetary Fund (IMF) facility which provides resources to an IMF member for a shortfall in export earnings or an excess in cereal import costs that is due to factors largely beyond the member's control and which is temporary. Compensatory financing, introduced in 1963 and broadened several times, provides aid to members experiencing balance of payments problems as a result of fluctuations in commodity prices and shortfalls of receipts in tourism, "workers' remittances" and most services. Contingency financing helps members with IMF-supported adjustment programs to maintain the momentum of adjustment efforts in the face of a broad range of unanticipated, adverse external shocks -- for example, changes in international interest rates or prices or primary imports or exports
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