Post by ukipa on Apr 9, 2012 0:12:54 GMT 4
Bank of the South to operate with USD 7 billion at the outset.
The financial organization established by several Latin American countries will start operations this year.
Eudomar Tovar, the first Vice-President of the Central Bank of Venezuela, affirmed that Latin America is on its way to a new financial architecture that will boost trade integration based on complementarity instead of competition.
"Complementarity seeks to strengthen the industrial network of every Latin American country. We must take into account that there is no way to promote integration process only through tariff reduction," he explained.
The Bank of the South (Banco del Sur) is a financial institution that will provide financing for infrastructure plans and business in the region; it could start operations in 2012.
The bank will be seated in Caracas. Argentina, Ecuador and Uruguay already submitted to the Venezuelan Ministry of Foreign Affairs the Agreement Establishing the Bank.
Eudomar Tovar stated that these countries, along with Venezuela, are in a position to start financial operations in 2012.
The Bank of the South is scheduled to establish this year an initial capital of USD 7 billion which will be provided in separate parts by each of the member states.
"Argentina, Brazil and Venezuela will provide USD 2 billion each; while Ecuador and Uruguay will provide USD 400 million each and Paraguay and Bolivia will provide USD 100 million each," Eudomar Tovar broke down.
There will be an amount of capital contribution (USD 3 billion) which would be disbursed by Colombia, Chile and Peru, if they decide to enter the bank.
A committee is working in Brazil to draft the regulations that will establish the Bank of the South's lending terms and conditions. Each member country will have one vote in the governing bodies.
"Every country has a vote and there will also be a council of ministers, and audit board and an executive committee," Tovar added.
Together with the Bank of the South, the governments of the region are planning to establish the Fund of the South in order to provide funds to the member countries of the Union of South American Nations (Unasur) if a global economic instability threatens to create a balance of payments crisis.
Eudomar Tovar is quite optimistic in his assessment of the situation of the Unified System for Regional Compensation (Sucre), a currency unit set to promote a new model of trade integration among the members of the Bolivarian Alliance for the Peoples of Our America (ALBA).
"Ten transactions were made under the Sucre in 2010; 431 transactions in 2011; in the first three months of this year, 385 transactions have been made," Tovar reported.
The Sucre allows the member countries to use local currency to pay for imports. As a result, there are less delay for the settlement of transactions and lower transaction costs.
In 2011, small, medium and large enterprises accounted for 72.3% of the value of transactions with Sucres.
The financial organization established by several Latin American countries will start operations this year.
Eudomar Tovar, the first Vice-President of the Central Bank of Venezuela, affirmed that Latin America is on its way to a new financial architecture that will boost trade integration based on complementarity instead of competition.
"Complementarity seeks to strengthen the industrial network of every Latin American country. We must take into account that there is no way to promote integration process only through tariff reduction," he explained.
The Bank of the South (Banco del Sur) is a financial institution that will provide financing for infrastructure plans and business in the region; it could start operations in 2012.
The bank will be seated in Caracas. Argentina, Ecuador and Uruguay already submitted to the Venezuelan Ministry of Foreign Affairs the Agreement Establishing the Bank.
Eudomar Tovar stated that these countries, along with Venezuela, are in a position to start financial operations in 2012.
The Bank of the South is scheduled to establish this year an initial capital of USD 7 billion which will be provided in separate parts by each of the member states.
"Argentina, Brazil and Venezuela will provide USD 2 billion each; while Ecuador and Uruguay will provide USD 400 million each and Paraguay and Bolivia will provide USD 100 million each," Eudomar Tovar broke down.
There will be an amount of capital contribution (USD 3 billion) which would be disbursed by Colombia, Chile and Peru, if they decide to enter the bank.
A committee is working in Brazil to draft the regulations that will establish the Bank of the South's lending terms and conditions. Each member country will have one vote in the governing bodies.
"Every country has a vote and there will also be a council of ministers, and audit board and an executive committee," Tovar added.
Together with the Bank of the South, the governments of the region are planning to establish the Fund of the South in order to provide funds to the member countries of the Union of South American Nations (Unasur) if a global economic instability threatens to create a balance of payments crisis.
Eudomar Tovar is quite optimistic in his assessment of the situation of the Unified System for Regional Compensation (Sucre), a currency unit set to promote a new model of trade integration among the members of the Bolivarian Alliance for the Peoples of Our America (ALBA).
"Ten transactions were made under the Sucre in 2010; 431 transactions in 2011; in the first three months of this year, 385 transactions have been made," Tovar reported.
The Sucre allows the member countries to use local currency to pay for imports. As a result, there are less delay for the settlement of transactions and lower transaction costs.
In 2011, small, medium and large enterprises accounted for 72.3% of the value of transactions with Sucres.