compensatory financing facility

Last week, the fund approved $654 million from its compensatory financing facility, which grants loans to nations hurt by depressed commodity prices.

To help offset this phenomenon, Bangladesh first used the compensatory financing facility of the International Monetary Fund in fiscal year 1974.

The contingency facility builds on a program known as the Compensatory Financing Facility, which has provided $20 billion of assistance to 80 countries since it began in 1962.

In 1966, the Compensatory Financing Facility (CFF) was just beginning to be a major source of financing for commodity-exporting countries.

The money is to come from an I.M.F. reserve called the Contingency Compensatory Financing Facility, said a Government official familiar with the negotiations.

Since the 1960's the I.M.F. has offered a Compensatory Financing Facility that has enabled borrowers to borrow somewhat more money if faced with lower commodity prices.

Quotas are also used to measure how much countries may receive from the I.M.F. Under the existing Compensatory Financing Facility, countries may draw up to 83 percent of their quota.

The National Commission on Money, Credit, and Banking recommended broad structural changes in Bangladesh's system of financial intermediation early in 1987, many of which were built into a three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987.