South American Nations to Create New Bank

Led by Venezuelan President Hugo Chavez, an assortment of South American nations are creating a new bank to rival the IMF, American bank IDB, and World Bank. The countries include Brazil, Ecuador, Bolivia, Paraguay, Uruguay, Venezuela, and Argentina. The bank will be called Banco del Sur, or Bank of the South.

So why are all these countries uniting to create a new bank? Chavez strongly believes that the other banks create impossibly difficult sanctions that leave many in region under extreme poverty. Under the new system it will help alleviate their citizens to new financial prosperity.

Most can look into this as Chavez as positioning himself more and more as the strong Latin America voice against America, but South American countries facing poverty this looks like a golden opportunity for them.

Brazil itself has played an important role. The most economic and populated nation in the region was hesitant to go in at first, citing they wanted to make sure that the bank was established to help growing communities. They agreed hoping this would allow Brazil businesses to grow to even greater heights. This all comes at the eve of the World Bank about to hold meetings this week.

All information found at Taipei Times