By DPA
Buenos Aires : Seven South American presidents are expected to formally launch Sunday the Bank of the South here, intended as a regional alternative to the International Monetary Fund (IMF) and the World Bank.
Argentine officials said that host President Nestor Kirchner will be joined by presidents Luiz Inacio Lula da Silva of Brazil, Tabare Vazquez of Uruguay, Hugo Chavez of Venezuela, Rafael Correa of Ecuador, Nicanor Duarte Frutos of Paraguay and Evo Morales of Bolivia.
Sunday will be Kirchner’s last day in office before he steps aside for the inauguration of his successor, his wife and president-elect Cristina Fernandez. The presidents are expected to stay on for the inauguration Monday.
The finance ministers of the countries involved agreed upon the foundation principles of the Bank of the South – an initiative of Chavez – in early November in Rio de Janeiro.
Brazilian Finance Minister Guido Mantega told Brazilian daily O Estado de Sao Paulo that the bank will not “finance adventures” and will benefit the region.
The Bank of the South is set to have its headquarters in Caracas, with further offices in Buenos Aires and La Paz. It is scheduled to be operational in early 2008, with an estimated initial capital of $7 billion.
The bank is planned to finance development and integration projects with a low rate of interest.