The International Monetary Fund said a new...

The International Monetary Fund said a new financing arrangement for debtor nations will help maintain reform programs even in the face of “adverse economic shocks” such as higher interest rates. The new Compensatory and Contingency Financing Facility replaces and expands the IMF’s old contingency financing program set up in 1963, which buffered nations faced with unexpected declines in export earnings. The new program will provide financial assistance to member countries that encounter balance of payment difficulties because of temporary export shortfalls, adverse external events and excessive costs of cereal imports, an IMF statement said. The loans will be provided at 5.5% annual interest rates.