V. To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with the opportunity to correct maladjustments in their balance of payments, without resorting to measures destructive of national or international prosperity. VI. In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balance of payments of members Functions: These are: regulatory, financial, and consultative functions: Regulatory Function: The Fund functions as the guardian of a code of rules set by its (AOA— Articles of Agreement). Financial Function : It functions as an agency of providing resources to meet short term and medium term BOP disequilibrium faced by the member countries.
Consultative Function: It functions as a centre for international cooperation and a source of counsel and technical assistance to its members. The main function of the IMF is to provide temporary financial support to its members so that ‘fundamental’ BOP disequilibrium can be corrected. However, such granting of credit is subject to strict conditionality. The conditionality is a direct consequence of the IMF’s surveillance function over the exchange rate policies or adjustment process of members. European Union The European Union is a political and economic union of 28 member states that are located primarily in Europe. It has an area of 4,475,757 km², and an estimated population of over 510 million. The Union’s mission: – Establishing an area of freedom, security and justice without internal borders. – Developing an internal market where competition is free, within the framework of a social economy market whose aim is full employment. – Creating a sustainable development with an economic growth capable of fulfilling the well-being needs of our society in the short, medium and, especially, long term. – Promoting scientific and technical progress. – Fighting against social exclusion and discrimination. Promoting social justice and protection, equality between women and men, solidarity between generations and, protection of children’s rights. – Promoting economical, social and territorial cohesion and solidarity among Member States. The European Union plays important roles in diplomacy, the promotion of human rights , trade, development and humanitarian aid and working with multilateral organisations. The European Union plays important roles in diplomacy, the promotion of human rights, trade, development and humanitarian aid and working with multilateral organisations. The role of the EEAS is to try and bring coherence and coordinating to the European Union's international role. EU policy is in general promulgated by EU directives which are then implemented in the domestic legislation of its member states . The seven principal directive-decision-making bodies—known as the Institutions of the European Union are the European Council , which provides overall direction by quarterly meetings of Heads of member states (chief executives) propose, and later authorize directives