Mercosur Bank of the South on track to its creation

Paraguayan President Nicanor Duarte and Mercosur ministers of Economy and Foreign Affairs decided Tuesday the creation of the Bank of the South, --an idea promoted by Venezuela—that should act as an alternative for world multilateral organizations such as the World Bank, IMF and the Inter American Development Bank.


The meeting in Paraguay’s capital Asuncion is being held in the framework of the fifth extraordinary meeting of the Mercosur Council, (Foreign Affairs and Economy ministers) in preparation for the Latin American leaders’ summit which is scheduled in Asuncion next month.

The future development bank, included in the Declaration of Asuncion will have equal representation and capital share from Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela. The initial capital is estimated between 300 and 500 million US dollars.

The main objective of the bank is to promote “developmentâ€