Venezuela
To Inject $4 Billion to South
Bank
PORLAMAR, Venezuela - Venezuelan President Hugo Chavez announced
Sunday that his country will invest 4
billion U.S. dollars in the newly created
South Bank to set in motion the financial
institution.
Chavez announced Saturday the creation of
the South Bank with a capital of 20 billion
dollars to benefit South American and
African countries.
The amount of money will be injected by
Brazil, Argentina and Venezuela (4 billion
U.S. dollars each) and the rest will be
given by Uruguay, Ecuador, Paraguay and
Bolivia according to their financial
capacity.
According to Chavez, the creation of such an
institution of public international right is
favorable and will help to create and
consolidate a financial system that will
stop the negative impact caused by the world
financial crisis.
"The idea is to strengthen the integration
and reduce asymmetries. Its functions will
be financial organs of government,
autonomous institutions, mixed enterprises,
private enterprises, cooperatives, projects
in key economic sectors, as well as in the
social sector," he said.
Likewise, he added that a Special Fund of
Social Solidarity will be created. This fund
will finance social projects and the loan
will be refundable or non-refundable. There
will also be a special fund for emergencies.
"The Bank of the South is a strategic
institution and I thank the presidents and
the ministers that have worked together
during these years. I think we have to go
beyond and create our own South-South
financial system," he added.
The Bank of the South will have its head
office in Caracas, capital of Venezuela, and
sub-offices in Buenos Aires if Argentina and
La Paz of Bolivia. They will rely on each
other to develop their functions.
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