Source:
IFIs Latin American Monitor
Thu Jun 14 2007
The Bank of the South, as a Latin American alternative to the IFIs, is on its final stretch. This week the charter and bylaws of the new institution will be ready. The presidents of member countries are expected to sign the Bank’s charter at the opening of the Copa America football tournament to be held in Venezuela from June 26.
Representatives from Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela, together with Chile, in the capacity as observer, meet this week in Buenos Aires to draw up the charter and bylaws of the Bank of the South.
Following a long discussion on the Bank’s goals and purposes, it was finally agreed that the institution will be financing the economic and social development of member countries within the brand-new Union of South American Nations (UNASUR, in Spanish), created during the South American Energy Summit held on Margarita Island, Venezuela. The Bank will "make use of inter and extra-regional savings, thus strengthening integration, reducing imbalances and promoting an equal distribution of investments among member States".
Given the fact that the new institution is conceptually closer to Brazil’s National Bank of Economic and Social Development (BNDES) than to the Southern Monetary Fund originally proposed by Venezuelan President, Hugo Chávez, the influence of the Brazilian government appeared to be decisive at the time of defining the institution.
In order to distinguish the Bank of the South from multilateral credit institutions, its bylaws are expected to ratify equal votes for all member countries.
The meeting to be held in the Argentine capital was scheduled in May, during a gathering of MERCOSUR ministers, which took place in Asuncion. The Paraguayan Economy Minister, Ernest Bergen, pointed out that all members of UNASUR were invited to attend this technical meeting. However, Chile is so far the only country to have shown some kind of interest in the initiative.
The presidents of member countries are expected to sign the Bank’s charter at the opening of the Copa America football tournament to be held in Venezuela from June 26. This event will give Venezuelan President, Hugo Chávez, the political opportunity of personally organizing the birth of the institution.
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