The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Just what is the point of Banco del Sur?

Does Latin America really need a new multilateral lender? Do Latin countries need more funding, and might not Banco del Sur hinder local capital markets’ growth?

In December, the presidents of Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela stood before their national flags in Buenos Aires and signed the founding charter of the Banco del Sur, the “Bank of the South”. The new bank aims to lend money to its member nations for social and infrastructure projects, with each member giving $1.4 billion from its currency reserves to the bank in coming weeks.

The finance ministers in the region announced in May 2007 that the new bank would be based on “democratic, transparent and participatory schemes that are responsible to their constituencies”, as the region enters a new era, with approaches different to the free trade neo-liberalism policies of the 1980s and 1990s.

Even as the socialist words of Venezuela’s president, Hugo Chávez, ring in the ears, several bankers doubt that this master plan will ever fulfil its potential. The bank says the first loans are expected in just a matter of weeks with around $7 billion of capital but there is a long way to go before any such handouts can start.

First, the main premise of the bank is that all members have equal voting rights and contribute equal amounts of money.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree