With such a facility in place, there should be greater confidence amongst policy makers and short term stabilization support could be accessed without the major conditionalities associated with conventional international institutions – and that such borrowing could be without strings provided such needs are not structural.
Regional financial cooperation should move progressively forward, with the process being further strengthened and should work toward becoming more focused on this important area. The Regional Stabilization Fund was conceptualized as a short-term financing facility to assist member countries in managing their balance of payments shortfalls at a time of financial distress.