Public Information Notice: IMF Concludes Review of the Compensatory Financing Facility
April 7, 2004

Review of Fund Facilities— Preliminary Considerations
March 2, 2000

Review of the CCFF and BSFF--Preliminary Considerations
December 9, 1999

Review of the Compensatory Financing Facility

Prepared by the Policy Development and Review Department
In Consultation with other Departments
Approved by Mark Allen

February 18, 2004

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I.   Introduction
II.   Purposes of the CFF
III.   Modifications to the CFF in 2000
IV.   Policy Issues for Review

Three Premises on which the CFF is Based-Do They Still Hold?


The Case for Further Redesign of the CFF


Concluding Thoughts

V.   Issues for Discussion
1.   The CFF-Current Features and Recent Modifications
2.   Recent Findings on Commodity Price Shocks
3.   Reforms of the CFF Proposed in Other Fora
1.   Compensatory Financing Facility, Incidence and Access
2.   Capital Inflows
1. The Nature of Compensatory Financing Facility Assistance, 1990-2003
Annex I. Analysis of the Southern African Cereal Import Shock
1.   Impact of the Cereal Supply Shock
2.   Response to the Cereal Shock
Annex II. The Shock of September 11, 2001
1.   September 11 Shock: Projected Export Shortfall in 2002
2.   September 11 Shock: Number of Countries and Size of Projected Shortfall
Annex III. CFF-Criteria to Determine a Satisfactory Balance of Payments Position