Long-term funding arrangements for International Film Festival Rotterdam's prestigious Hubert Bals Fund (HBF) remain shrouded in doubt.

The Fund supports filmmakers from developing countries. It currently has close to $1.9m (Eu1.2m) a year at its disposal. It has backed several films in official selection in Cannes this year.

In 2006, the Dutch Ministry Of Foreign Affairs turned down HBF's application for funding.

At the time, this was seen a simply a technical issue that would soon be resolved.

The Dutch Government had expressed its support for HBF's activities but had questioned whether its funding should come via the Ministry Of Foreign Affairs.

However, close to two years on, no decision has been made about which Government agency or department should be supporting HBF.

In Cannes, IFFR's director Rutger Wolfson acknowledged that the continuing uncertainty surrounding HBF is becoming an increasing cause for concern.

'The Ministry of Foreign Affairs says that they are going to fix it (the logjam) but they haven't done it yet,' Wolfson commented.

HBF's funding will run out next year and festival organizers are keen to ensure the Fund's future as soon as possible. 'For us, it is totally vital,' Wolfson commented.

'I am not sounding the alarm bells code red, phase 5 yet but we are concerned that it is not fixed yet

There are 16 films in Cannes that have a connection with IFFR, either through HBF or through the festival's co-production market CineMart.

These include Pablo Trapero's competition entry, Leonera, a CineMart project in 2007, Lisandro Alonso's Liverpool (in the Quinzaine) and British director Duane Hopkins' Better Things

Next year's IFFR, the 38th, runs from 21 January to 1 February 2009. Details of the programme are yet to be announced.

However, it has been confirmed that Quinzaine buzz title Blind Loves (on Autlook's Cannes slate) will be screening. Wolfson has also confirmed that this year's festival will feature a special sidebar called Hungry Ghosts, showcasing Asian horror movies and looking at the different responses to these movies in Asia and the west.

Earlier during the festival, IFFR announced contributions to 27 film projects for a total amount of 385,000 Euro through HBF.

Among the projects supported were Tony Manero by Pablo Larrain, screening in the Quinzaine.