Specialists Discuss Constituent Agreement of Bank of the South
23 July, 2008

Havana, Cuba.-  Specialists from the member countries of the Bank of the South analyzed in Asuncion, Paraguay on Monday a draft agreement establishing this financial organization.

In June of this year, member countries established an initial capital of US$ 10 billion with the possibility of extending the contribution to 20 billion. The initiative, boosted by Venezuelan President Hugo Chavez, will have its head office in Caracas and branches in Buenos Aires and La Paz, reported Granma newspaper.

The Bank of the South was founded in December 2007 to provide South American countries with more autonomy in relation to the International Monetary Fund and the World Bank and earmark resources for regional development projects. It is made up of Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela.

The Bank’s administrative framework represents an unprecedented innovation in terms of multilateral credit organizations. The draft agreement to establish the institution was structured in Buenos Aires, in June. (acn)