Examples of using Compensatory financing in English and their translations into Arabic
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Ecclesiastic
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Recently, there have been significant changes in the IMF and European Union(EU) compensatory financing mechanisms for short-term fluctuations in export earnings and in main safety-net measures protecting the different agents in the commodities sector against negative effects of price instability.
In particular, compensatory financing mechanisms existed under the Lomé Conventions between the EU and ACP countries and were retained in the Cotonou Partnership Agreement, as illustrated by the FLEX instrument, which provides budget support to ACP countries.
The subject areas of highest priority were: enhanced, equitable and predictable market access for commodities of key importance to developing countries; addressing the problems of oversupply; making compensatory financing schemes user-friendly and operational; strengthening capacity and institutions; and pursuing the possibilities for the creation of a new International Diversification Fund.
There was a need for measures to reduce the negative effects of price fluctuations, and also for a review of compensatory financing schemes with a view to making them more operational and responsive to the needs of commodity producers and the governments of commodity-dependent developing countries.
that such countries required compensatory financing through the multilateral financial institutions.
The best-known are the Contingency and Compensatory Financing Facility of the International Monetary Fund( 1988), preceded by the Compensatory Financing Facility, which commenced in 1963; and the various arrangements concluded between the European Union and the African, Caribbean and Pacific countries under successive Lomé Conventions and the Cotonou Agreement, that is, the stabilization of export earnings, the system for mineral products and the instrument for financing short-term fluctuations in export earnings.
As regards commodities, development partners agreed to support capacity-building in the areas of research and development, production, processing and marketing of commodities, to support diversification programmes in least developed countries, to continue to provide technical and financial support to enhance the productive capacities of least developed countries, and to continue to provide compensatory financing in order to mitigate adverse consequences of commodity price volatility on least developed countries ' economies.
making compensatory financing schemes user-friendly
both in the public and private sectors. Compensatory financing systems should be reviewed with a view to making them more predictable and simpler to implement, including through the possible use of modern risk management and risk sharing instruments.
The recommendations contained in the Report of Eminent Persons should be ratified by the General Assembly, especially on the following points: enhanced, equitable and predictable market access for commodities of key importance to developing countries; addressing the problems of oversupply for a number of commodities; making compensatory financing schemes user-friendly and operational; strengthening capacity and institutions; and pursuing possibilities for the creation of a new International Diversification Fund.
making compensatory financing schemes user-friendly
In the face of the global food crisis, it is essential to provide: emergency food assistance to the groups and regions at greatest risk; enhanced, quick-disbursing compensatory financing for low-income countries that face adverse effects as a result of high food prices; and effective and efficient social safety nets to minimize the adverse consequences for the poor(see the report of the Secretary-General on agriculture(E/CN.17/2009/3)).
He also envisaged the need for compensatory financing mechanisms to help vulnerable countries and primary exporters who might find the shift to new markets in the South difficult in the short and medium term; along with new rules on transnational corporations, given their likely prominent role in expanding South- South manufacturing trade and the possible threat of a race to bottom that might accompany this trend.
The report of the Group of Eminent Persons on Commodity Issues convened by UNCTAD includes several recommendations that are relevant in this context, including on the importance of enhanced, equitable and predictable market access for commodities of key importance to developing countries, addressing the problems of oversupply, making compensatory financing schemes user-friendly and operational, strengthening capacity and institutions, and establishing a diversification fund.
Progress in multilateral assistance to mitigate the consequences of depressed export revenues of countries that still depend heavily on commodity exports and an assessment of the effectiveness of the recent review of the International Monetary Fund Compensatory Financing Facility, as well as progress in empowering developing country commodity producers to insure themselves against risk, including against natural disasters, and in the efforts of multilateral aid agencies to strengthen their support to export diversification programmes in those countries;
More specifically, to offset the possible deterioration in LDC trade balances, a range of measures would be required. The Marrakesh Ministerial Decision on LDCs and net-food-importing countries points to the need for improved conditions for, and an increase in, food aid(paragraph 3(i) and(ii)) and for balance-of-payments support through access to compensatory financing schemes(paragraph 5); as stated in chapter 1, more vigorous debt-relief measures are also necessary.
Compensatory financing mechanisms.
Compensatory financing mechanisms.
(c) Compensatory financing mechanisms;
International commodity agreements and compensatory financing schemes.