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.



  • Show Comments (2)

  • AES

    And the new currency is backed by oil? Now that Brazil is achieving economic stability, Why is it jeopardizing this success with a new euro. Unless the currency i s backed by gold reserves, it is a curious idea. And we were doing so well. The old saw, if it aint broke dont fix it. Fix Brazil first, the poor, the infrastructure, then help your neighbors. Ith concept is probably noble, but overreaching and self debilitating to the economy of Brazil. And a united army to enforce the will of the continent. Chavez has a stash of new arms, perhaps he would be willing to police the concept, no doubt.

  • João da Silva

    Your turn again,to comment.Sort of wierd,dont you think so?

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Brazil Politics: Three Cheers for Marina Silva!

Welcome back Marina Silva! By announcing her resignation from the Workers Party (PT), she ...

Brazil’s Lula Has Unsurmountable Lead in Sunday’s Election: 22 Points

Luiz Inácio Lula da Silva heads to this Sunday’s, October 29, presidential runoff in ...

Brazilian Shoe Stylist Does Work for Bebe and Guess

The designer of feminine shoes Meline Moumdjian, owner of the brand of luxury shoes ...

While Schools Get Broadband the Rest of Brazil May Have to Wait a Long Time

Launched in April 2008 by Brazilian president Luiz Inácio Lula da Silva, the Broadband ...

In Brazil Poor Won’t Pay for the World Economic Mess, Says President Lula

Brazilian President Luiz Inácio Lula da Silva, in his last official commitment in 2008, ...

Brazil’s Conspiracy of Silence Breeds Slavery, Poverty and Torture

There is no such thing as silenced truth. When covered over by silence, the ...

88% of New Exporters in Brazil Are Micro and Small

Among the 1,020 Brazilian companies that started exporting last year, around 900, or 88%, ...

Probe Reporter Talks About ‘Glaring Evidence’ of Scam in Brazil’s Ruling Workers Party

The reporter of the Joint Parliamentary Investigation Commission (CPMI) on Vote-Buying, Deputy Ibrahim Abi-Ackel ...

Contag, the Voice of Brazil’s 15 Million Peasants

The Contag is the biggest peasant organization presently in existence in Brazil. It represents ...

US Invites Brazil’s Agriculture Minister to Teach About Ethanol

While gas prices have skyrocketed during the past five years in the US and ...