Plans and involvement Bank of the South



rafael correa, evo morales, néstor kirchner, cristina fernández, luiz inácio lula da silva, nicanor duarte, , hugo chávez @ signing of founding charter of bank of south


the ultimate goal of bank of south include every state within region of south america. has been established because of disapproval of protocol of world bank , international monetary fund (imf), in particular enforcement of unrelated free market reforms on countries seeking emergency loans. represents attempt achieve regional independence , endogenous development. program lend money nation involved in construction of approved programs, , without conditions traditionally attached such loans, such deregulation.


the bank intended alternative borrowing imf , world bank. hugo chávez promised withdraw imf , encouraged other member states well. latin america s dependence on imf fell dramatically between 2005 , 2008, outstanding loans falling 80% of imf s $81bn loan portfolio, 1% of imf s $17bn of outstanding loans. brazil , argentina refusing borrow imf again.


it proposed member countries contribute equal shares bank s initial capital of fourteen billion brazilian reais (seven billion dollars) no member state control dominant share. argentina joined venezuela officially propose such initiative, brazil became major player. additionally, bank feature one-state one-vote structure, unlike imf.








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