Objectives of Latin American Reserve Fund

IAS Mains General Studies Sample Answers

Objectives of Latin American Reserve Fund: Enumerate!

It was formed in 1991 to succeed Andean Reserve Fund. To correct payment imbalance of the member counties this fund was established and for that it provides loans upto four year. This fund co-ordinates the monetary, exchange and finance policies. Objectives of this fund in developing growth of trade between the member countries and for that it promotes liberalization of trades and payments. Bolivia, Columbia, Venezuela, Peru and Equador are members of this fund.

For Asian Countries also such a fund can be proposed, as post 1997 economic crisis has affected many countries in this region. To encourage trade relations between the member countries and to provide loans in time of crisis, this fund has main objective. Development of this region can be boosted by such fund in time of crisis, which is quite a frequent phenomena now a days because of world trade integration and competition.

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