Compensatory Financing Arrangements

Compensatory financing arrangements in Global Commerce Policy

In this regard, compensatory financing arrangements is: intergovernmental schemes designed to minimize the effects of shortfalls in commodity export earnings and export earning fluctuations, particularly those of developing countries heavily dependent on commodity exports. The entries on trade policy are here. Access to the main arrangement, the IMF Compensatory and Contingency Financing Facility, is subject to a range of conditions largely aimed at promoting structural adjustment and improvements in the balance of payments. The STABEX and SYSMIN schemes, which were available to ACP states under the Lomé Convention, have not been renewed in the ACP-EC Partnership Agreement. Some budgetary assistance is still available to ACP countries heavily dependent on export earnings from agricultural and mineral products if losses in earnings are likely to jeopardize macroeconomic stability. See also Common Fund for Commodities.[1]

Compensatory financing arrangementsin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Compensatory financing arrangements” entry (OAS)

See Also