International Finance Facility

An International Finance Facility (IFF) is a bond issued against the security of donor government guarantees to maintain future aid flows for the purpose of international development.

Bonds are issued on global capital markets, against the security of government guarantees, which would be used to buy back the bonds over a longer period. This structured finance arrangement allows a large amount of aid to flow sooner, at the expense of less aid in the future.

Critics have raised concerns that the poorest countries in particular do not 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.

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