Tuesday, June 2, 2009

What is Latin American Reserve Fund?Do you advocate such fund for Asia?

The Latin American Reserve Fund was formed in 1991.It is the successor of the Andean Reserve Fund.It is a regional financial organization with the stated objective of correcting the payment imbalances of the member countries and for that it provides loan with terms up to four years.It coordinates the monetary,exchange and finance policies.It promotes liberalization of free trade and payments among the member countries.
The member countries are Venezuela,Ecuador,Peru,Columbia and Bolivia.The Headquarter of the organization is in Bogotá,Columbia.
The experience of 1997-98 and present financial crisis has taught us that there is a need of establishing such an institute even in Asia.The loans provided by such funds can ensure development even during the time of crisis.Such institute can work in parallel with organizations such as SAARC,ASEAN,ARF for steady economic progress of the region and successful trade and economic activities.

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