Brazil and Neighbors Build Their Own US$ 7-Billion Nest Egg

Brazil and Neighbors Build Their Own US$ 7-Billion Nest Egg
Written by Newsroom
Saturday, 09 May 2009

The definitive agreement for the launching of the Bank of the South, a multilateral organization to help fund development and infrastructure projects, was finally reached Friday, May 8, in Buenos Aires, capital of Argentina. The document was signed by finance ministers from Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela

"We've closed all pending issues and therefore this is the last ministerial meeting on the subject, said Argentine Finance minister Carlos Fernández who nevertheless added that the final stitch is "the technical review of statutes" of the new bank and the "parliamentary approval by the seven founding countries."

The Bank of the South, started at the end of 2007 (and the brainchild of Venezuela's Hugo Chavez), will have an initial capital of 7 billion US dollars (originally it was planned 10 billion), of which Argentina, Brazil and Venezuela will supply 2 billion US dollars each; Ecuador and Uruguay 400 million US dollars each and Bolivia 200 million.

"The terms of the agreement are acceptable, so the statutes should be easily approved without much discussion," said Brazil's Finance minister. Guido Mantega. "This is the missing step for financial integration," he added.

More:
http://www.brazzilmag.com/content/view/10715/