[NYTr] Bank of South: Alternative to Crisis

[All the News That Doesn't Fit]

Prensa Latina, Havana
http://www.plenglish.com

Bank of South: Alternative to Crisis

Caracas, Sep 21 (Prensa Latina) The Bank of the South initiative,
encouraged by Venezuelan President Hugo Chavez, stands as a real
alternative to the instability of international financial markets due
to the mortgage crisis. 

November is shaping up as decisive for the emergence of the new
institution, with the participation of Venezuela, Ecuador, Argentina,
and Bolivia, with Brazil likely to join them.

Supporters of the Bank of the South agree the initiative would be an
excellent safety mechanism to confront the dangerous volatility of
world finance and stock markets.

Venezuelan authorities noted they are studying measures to protect the
country from a huge financial quake that could strike the whole world.

President Chavez sustained that in the last weeks, the US Federal
Reserve was forced to inject about 300 billion dollars to prevent the
currency from collapsing.

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Venez: Bank of South to Impact Public

Caracas, Sep 21 (Prensa Latina) The Bank of the South, an initiative
fostered by Venezuela's President Hugo Chavez, will finance
important programs to support social development strategies, Finance
Minister Rodrigo Cabezas asserted on Friday.

The future institution will support actions related to "reducing
differences among our peoples," and would avoid the International
Monetary Fund and World Bank models of granting loans tied to policies
of domination, he explained.

Cabezas said no one will be hegemonic, because credit policies with
clauses that punish countries will be excluded.

In reference to the bank's creation, the minister said Venezuela
has proposed means of capitalizing the institution, which requires
final approval by the States involved.

The decision by the presidents in this matter is definitive, he
said, recalling "the first thing is political will for integration."

"South America is obliged to show the world that we can and should
make an effort for integration," Cabezas stated, predicting the birth
of the bank at the end of the year.

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