South America set to launch new bank today to rival IMF

[sniffa]

Source: The Daily Star

Latin American leaders on Sunday inaugurate the Bank of the South, the brainchild of Venezuela's President Hugo Chavez, who hopes it will help wean the region off institutions like the IMF.

Six South American presidents are scheduled to gather in Buenos Aires on Sunday to formally launch the bank, which will be headquartered in Caracas.

The creation of the regional bank comes amid a widespread perception in South America that adjustment policies imposed by multinational credit agencies have failed.

The bank, which will start operations in 2008 with an initial capital of seven billion dollars, is designed to support regional development and integration projects.


Read more: http://www.thedailystar.net/story.php?nid=14786

[Mudoria]

1. *Shrug*

[dipsydoodle]

2. Good

It should remove the sort of ties usually associated with IMF loans.

[LakeSamish706]

3. This will really piss shrubbie and aunts off. n/t

[fascisthunter]

4. Excellent

nothing like competition. It keeps the powerful in check.

[diane in sf]

5. Glad to hear it.

[Peace Patriot]

6. Gee, could this be why D. Rumsfeld declared war on Venezuela last week?

(There are so many reasons.)

See: "The Smart Way to Beat Tyrants Like Chávez," By Donald Rumsfeld
Sunday, December 2, 2007
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/30/AR2007113001800.html

Discussion here:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x323889

I think maybe the Bolivarians are the smart ones, no?

[Pastiche423]

7. This is a great move for the Latin American countries

It's about time they kick the imperialists out of their countries.

It's been a long time coming - a century long time.

[annabanana]

8. It is a sorely needed institution.. . The IMF has had a monopoly

on big international money for too long.

[Judi Lynn]

9. Bank of the South: Another step toward Latin American integration

Bank of the South: Another step toward Latin American integration

Since coming to power in 1999, Venezuelan President Hugo Chávez may have been seen as a controversial figure, universally known for his confrontational stance regarding U.S. foreign policy aims. However, his zeal for social reform, promotion of Latin American integration and his unquestionable good will toward other nations will reach a high-water mark on Sunday, December 9, 2007, when the Bank of the South will be formally launched.

Integration has been a recurrent theme on Chávez’s political agenda—not Washington’s kind, but the more regional-centric ALBA (Bolivarian Alternative for the Americas)— which is given reality by the oil concessions Venezuela has negotiated with various Latin American countries, as well as his most recent proposal for a development bank for South America, which has been given the working title of Banco del Sur (Bank of the South).

The Bank of the South appears to be one of the region’s most compelling projects leading towards authentic Latin American financial bolstering, as well as helping to allow for a new-found autonomy. It appears that for the first time in its history, the region actually will have its own entirely autonomous financial institution with each of its members having one vote and which is most likely scheduled to be capitalized from $7 to 8 billion dollars. This large institution will be capable of promoting financial integration and cooperation. Under its members’ jurisdiction, it will support the development of badly needed infrastructure projects, especially in the energy sector. This initiative has the support of seven South American countries (Venezuela, Ecuador, Bolivia, Brazil, Argentina, Uruguay, and Paraguay) in addition to several other Caribbean and Asian nations that already have expressed varying degrees of interest in the project.

Nobel Laureate and Columbia University Professor Joseph Stieglitz gave his blessing to the project after meeting Chávez in Caracas. In a subsequent press conference, he observed that “one of the advantages of having a Bank of the South is that it would reflect the perspectives of those in the Western Hemisphere. It would boost Latin America’s development and provide a useful alternative to the World Bank and the International Monetary Fund (IMF). It is a good thing to have competition in most markets, including the market for development lending.”

More:
http://www.coha.org/2007/12/07/bank-of-the-south-another-step-toward-latin-american-integration/

This analysis was prepared by COHA Research Associate Roberto Mallen
December 7th, 2007

[dantyrant]

10. Holy crap.

Iran and Venezuela coordinating attacks on the dollar? Yikes. Get out of the dollar now if you can.

[rAVES]

11. Good for them :)

[The Backlash Cometh]

12. Can we launch our own Wall Street?

[Judi Lynn]

13. S America set to launch new bank

Last Updated: Sunday, 9 December 2007, 15:36 GMT
S America set to launch new bank
By Daniel Schweimler
BBC News, Buenos Aires

Representatives from across South America will sign agreements on Sunday setting up a new regional bank, the Banco del Sur or Southern Bank.

The body is designed to supersede the World Bank and International Monetary Fund (IMF), seen by many as responsible for failed policies in the region.

Funded by regional powers such as Brazil, Argentina and Venezuela, it will aid economic and social projects.

Each member will have one vote, irrespective of its size or funding.

More:
http://news.bbc.co.uk/2/hi/business/7135397.stm

[classysassy]

14. The greed merchants

Bush and his greedy pal will try to torpedo that bank.

[Judi Lynn]

15. Oh, God, will they! I hadn't even gotten that far in my thinking, but I know in my heart you are

100% correct.

This will burn them like they've never been burned. They're not going to take it without doing more damage than anyone would think possible.

People have posted the figures here on how much the IMF and World Bank USED to do in Latin America: most of their real money was made from Central and South America. Now it has been reduced to a tiny, TINY trickle.

Full speed ahead to Bank of the South, may you prosper beyond your wildest dreams. This IS an idea whose time has come.
Best possible luck, may your enemy destroy only himself.

[Judi Lynn]

16. Why South America wants a new bank

Last Updated: Monday, 10 December 2007, 08:27 GMT
Why South America wants a new bank
By Lourdes Heredia
BBC News, Washington

Leaders of several South American nations have signed a founding document to create a new body, the Banco del Sur, as an alternative to multilateral credit organisations such as the International Monetary Fund and World Bank.
(snip)

Analysts believe the Banco del Sur initiative reflects the increased unpopularity of the IMF and the World Bank among many South American countries.

Mark Weisbrot, co-director of the Center for Economic and Policy Research in Washington, also sees it as one of many signs of a new independence from institutions such as the IMF and its "unwanted austerity measures".

"At the beginning of this decade, scepticism in Latin America was sealed when Argentina disregarded IMF advice by defaulting on its debt and then experienced robust economic recovery," Mr Weisbrot said.

Luis Maldonado, a presidential representative to the government body that helps regulate Ecuador's banking sector, argues that "Latin America has been impoverished and harassed long enough that we have no other choice start Banco del Sur".

More:
http://news.bbc.co.uk/2/hi/americas/7068124.stm

[boricua79]

17. I love the smell of self-determiantion and independence in the morning NT

[Judi Lynn]

18. Key facts on Bank of South

Key facts on Bank of South
www.chinaview.cn 2007-12-10 13:25:46

BUENOS AIRES, Dec. 9 (Xinhua) -- Presidents of Argentina, Venezuela, Brazil, Bolivia, Ecuador and Paraguay signed a document Sunday to create the Bank of the South, a development bank funded by Venezuela, Bolivia and Argentina.

Uruguayan President Tabare Vazquez is expected to sign the document Monday morning.

Following are key facts on the Bank of the South:

The Bank of the South was formally founded on Dec. 9 in the Argentine capital of Buenos Aires and made up of seven South American countries, including Brazil, Argentina, Venezuela, Uruguay, Ecuador, Bolivia and Paraguay.

The bank is designed to provide financing for the South American countries and seen as a counterweight to the International Monetary Fund and the World Bank.

Venezuelan President Hugo Chavez and his Argentine counterpart Nestor Kirchner put forward a proposal to establish the Bank of the South in 2006. They suggested to establish the Bank of the South by collecting part of foreign exchange reserves of the South American countries.

The fund will be used to boost economic growth of south America with cheap credit for infrastructure projects and financing for private sector projects.

More:
http://news.xinhuanet.com/english/2007-12/10/content_7225246.htm

[Judi Lynn]

19. New 'Bank of the South' shuns neo-liberal agenda

New 'Bank of the South' shuns neo-liberal agenda
by Rob Kievit

10-12-2007

Latin America is challenging the dominance of international financial institutions like the World Bank, the Interamerican Development Bank and, most of all, the International Monetary Fund.

In 2006 president Hugo Chávez of Venezuela took the initiative towards a new Bank of the South (Banco del Sur), as a counterpart to the major funds operating from the developed North of the globe. Seven countries have now signed up, agreeing to have the bank up and running in two months. All of the signatories can be described as leftist presidents, except Paraguay's leader Nicanor Duarte.

Professor Louk de la Rive Box, rector of the Institute of Social Studies in the Hague, a leading European Centre of Development Studies, told RNW about the role the bank wants to play.

"The Bank of the South has as its main objective to lend money to large programmes, for example the gazoduct which is being planned, an 8000-kilometer gas pipeline from Venezuela to Argentina. In the view of its proponents, especially President Chávez of Venezuela, it could also take over other functions from international financial institutions, the World Bank and the International Monetary Fund."

More:
http://www.radionetherlands.nl/currentaffairs/071210-bank-south