"The Bank of the South is Reality!" The IMF Can Go Rape Itself.
May 23 (EIRNS)--Paraguayan President Nicanor Duarte Frutos emerged from a May 22 meeting of Finance and Foreign Ministers of the Common Market of the South (Mercosur), to proclaim that the Bank of the South "is a reality...born of a necessity long since warned about on this continent."
Joining Duarte outside the meeting in Asuncion, Argentina's Finance Minister Felisa Miceli happily announced that the political decision to create the bank--which will function independently of the International Monetary Fund--"has been made."
First agreed upon in a February 21, 2007 meeting between Venezuelan President Hugo Chavez and Argentine President Nestor Kirchner, the Bank of the South has taken shape in a series of regional meetings held since then, and will culminate with the its official founding on June 26 in Caracas, Venezuela.
The bank's primary purpose will be to finance regional infrastructure projects, and as Argentina's Miceli explained, it will function as "a financing instrument for Latin American integration." Each member nation will contribute a portion of its reserves to make up its initial operating capital of $7 billion." Miceli said that the membership can eventually be broadened "to all those comprising the Union of South American Nations."
Venezuela's Finance Minister Rodrigo Cabezas told the Argentine news agency Telam that the idea behind the bank is for South America to promote its own development without "adult supervision," referring to the International Monetary Fund and other lending agencies controlled by the U.S. and Europe.
"In the 1990s, the IMF told us what to do and what not to do," Cabezas said. "Now, that cycle is finished. The bank will be run by its own members."