BUENOS AIRES -- Presidents from seven nations signed on Sunday a document creating the Bank of the South, a development bank launched with capital from Venezuela, Bolivia and Argentina.
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Presidents Rafael Correa of Ecuador, Evo Morales of Bolivia, Nestor Kirchner of Argentina and his wife president-elect Cristina Fernandez, Luiz Inacio Lula da Silva of Brazil, Nicanor Duarte of Paraguay and Hugo Chavez of Venezuela (L to R), hold hands after the signing the launching of the Bank of the South, during a ceremony at the presidential palace in Buenos Aires December 9, 2007. [Agencies]
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The public ceremony, gathering presidents representing Argentina, Venezuela, Brazil, Bolivia, Ecuador, Uruguay and Paraguay formally creates the bank, which starts work with US$7 billion in capital.
Its head office will be in Venezuelan capital Caracas, with two branches: in Argentina capital Buenos Aires and Bolivia's legislative capital La Paz.
The presidents have previously said that the Bank aims to stimulate economic growth with cheap credit for infrastructure projects and financing for private sector projects.