Millennium Development Goals: EU Contribution to the Review of the MDGs at the UN 2005 High Level Event, 24 May 2005

“FINANCING FOR DEVELOPMENT...

Exogenous shocks

12. In order to mitigate the impact of exogenous shocks, including price vulnerability, on developing countries’ economies, the EU will support the operationalisation of market based insurance schemes and explore possibilities for temporary suspension of debt servicing on a case by case basis. Further, the EU will strengthen and improve access to existing financing mechanisms such as those provided for in the Cotonou Agreement (FLEX) to give short-term cover against the impact of such shocks on countries’ revenue.”