Laht.com: The economy ministers of Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela have reached agreement on a charter for the Banco del Sur (Bank of the South), intended as a regional alternative to institutions such as the International Monetary Fund and the World Bank. "We have settled all the pending points," Argentina's Carlos Fernandez said after the meeting, adding that the document must still be ratified by lawmakers in the respective nations.

Fernandez said Banco del Sur should be established "as soon as possible" in view of the global recession and credit squeeze. The bank will begin operations with $7 billion in capital: $2 billion each from Argentina, Brazil and Venezuela; $400 million each from Ecuador and Uruguay, and $100 million each from Bolivia and Paraguay.

Despite the disparity in contributions, each partner will have an equal vote on the bank's board, Fernandez said, while noting that loans in excess of $70 million would require approval from countries representing two-thirds of the institution's total capital.

The proposed charter, which has been under discussion since 2007, "has acceptable terms, so it can be rapidly approved" by the member-states' parliaments, Brazilian Economy Minister Guido Mantega said. Banco del Sur "is the step that was needed for the financial integration" of South America, Mantega said. "It's no easy thing to create a financial institution like this in the middle of the international crisis."

Promoted by leftist Venezuelan leader Hugo Chavez, the objective of the Banco del Sur is to lessen the region's dependence on the IMF and World Bank and to finance regional development.

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