South American nations to launch bank as rival to IMF

The idea was first announced by Venezuela's President Hugo Chavez last December as part of his crusade against US influence and international financial institutions that he says are merely "tools of Washington."

The finance and economy ministers of Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela met last week in Rio de Janeiro to outline the main elements of the "Banco del Sur" -- or Bank of the South.

The lender will provide "a new financial architecture" for development in the region, according to the seven backers, whose initiative comes just ahead of annual meetings of the IMF and World Bank this weekend.

"There will not be credit subjected to economic policies. There will not be credit that produces a calamity for our people and as a result, it will not be a tool of domination," said Venezuelan Finance Minister Rodrigo Cabeza.

Chavez speaks of liberating regional countries from the tutelage of the IMF, the World Bank and the Washington-based Inter-American Development Bank (IDB) which,he argues, impose economic policies that condemn millions to poverty.

Bolstered by robust economic growth, Latin American countries are displaying a new assertiveness toward the IMF now that several of them -- notably Brazil and Argentina -- have paid off their debts early. - DDNEWS