Brazil, Venezuela and Neighbors Create Development Bank

Presidents Kirchner, Chavez and Lula The Finance and Economy ministers from Argentina, Brazil, Bolivia, Ecuador, Paraguay and Venezuela decided Thursday, May 3, in Quito the creation in parallel of a development bank and a macroeconomic stabilization fund to support financially the region. The initiative was agreed during the ministerial meeting in Ecuador's capital.

The six South American countries will give priority to the creation of a development bank and the strengthening of the Latinamerican Fund of Reserves, FLAR, which already exists and works in the framework of the Andean Community and with the purpose of helping country members address macro fiscal situations.

The agreement marks a significant distance from the original proposal from Venezuela's Hugo Chavez of creating an only entity under the name of Bank of the South.

"The project as has now been drafted will enable to solve several geopolitical issues that have been blocking integration," according to sources from the Ecuadorian Central Bank hosting the meeting.

The new organizations are scheduled to be made official sometime next June 22/26 when the presidents of the country members will be signing the creation of the new financial institutions, said Ricardo Patií±o, Ecuador's Finance minister.

A second stage of the project is the implementation of a common currency, probably at Central Bank level basically for trade and capital movement compensations.

Quito press sources said that the two dates and places under consideration for the launching are Caracas when the opening of the football Americas' Cup or in Paraguay during the Mercosur presidential summit.

Mercopress

Tags:

You May Also Like

Weak Dollar Worries Brazil’s Agriculture Officials

Brazil’s Minister of Agriculture, Roberto Rodrigues, says that the country’s present exchange rate, characterized ...

I’ll Miss You, Fernando

Brazilians live under threat and are easily intimidated. This belies the idea that Brazil ...

In His Talks to Obama Brazil’s Lula Will Urge Global Credit Relief

Talking to reporters before embarking for Washington, Brazilian President Luiz Inácio Lula da Silva ...

Shady Business as Usual in Brazil, One Year After Murder of US Missionary

"It hasn’t changed very much. The area was reoccupied by squatters, and the people ...

7 Minors Are Massacred and Dismembered in Rio, But Brazil Barely Notices

The community of Del Castilho, in the North side of Rio de Janeiro, Brazil, ...

British to Pay Close to 1 Million for 900 Tarantulas Found in His Luggage in Brazil

Lee Ardern, 26, a British citizen was taken into custody by the Brazilian police ...

Brazil Has US$ 42 Million for Farmers Growing Crops for Biodiesel

Over 50 thousand family farmers and their families will be able to make more ...

Lula Only Wants to Talk About the Economy Now

Brazilian President Luiz Inácio Lula da Silva underlined the stability and growth of the ...

After Record Year of Foreign Investment Brazil Braces for Slowing Down in 2012

Foreign direct investment (FDI) is expected to reach a new record this year in ...

Brazilians Having a Hard Time Getting Out of Egypt

Brazilians in Egypt are having difficulties getting out of the country where daily demonstrations ...