International Finance Facility
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The International Finance Facility (IFF) is a proposal by HM Treasury and Department for International Development of the United Kingdom. The IFF is designed to frontload aid to help meet the Millennium Development Goals. Bonds would be issued on global capital markets, against the security of government guarantees to maintain future aid flows, which would be used to buy back the bonds over a longer period. This would allow a large amount of aid to flow soon, at the expense of less aid in the future. Critics have raised concerns that the poorest countries in particular don't have the ability to efficiently spend such large amounts of aid (whilst avoiding corruption), and that their economies may not be able to cope with such rapid change either.
The first try of an IFF is the "International Finance Facility for Immunisation" (IFFim), established in 2004 by France, UK and other european countries. The IFFim has a specified schedule of payments totalling approximately US$4 billion over the next 20 years.
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