South America to create IMF/World Bank rival

by Richard Kilner

Story link: South America to create IMF/World Bank rival

This Sunday will see seven South American presidents launch of the Bank of South, intended to be a rival to the IMF and World Bank.

President Nestor Kirchner, leader of Argentina, will be hosting the even, which will be attended by his fellow presidents Luiz Inacio Lula da Silva of Brazil, Tabare Vazquez of Uruguay, Hugo Chavez of Venezuela, Rafael Correa of Ecuador, Nicanor Duarte Frutos of Paraguay and Evo Morales of Bolivia.

Sunday is also significant as it will be President Kirchner’s final day in office prior to his succession by Cristina Fernandez, who is also his wife.

The six presidential guests are expected to remain for her inauguration which will take place on Monday.

The founding principles of the Bank of the South were agreed upon back in November, when finance ministers met at Rio de Janeiro.

The new institution will be beneficial for the region, according to Brazilian finance minister Guido Mantega.

Initially the Bank of the South will have three offices, with headquarters in Caracas and two other offices in La Paz and Buenos Aires. To begin with the bank will have approximately $7bn of investment, and is due to become active in early 2008.