South America launches rival to the IMF, World Bank

Chavez earlier blasted the IMF, describing it as "a curse" on the region, and slammed its "shock politics that have spread hunger, misery, poverty and violence to our peoples."

Brazil's Lula said the regional bank "will finance projects in key economic sectors such as infrastructure, science and technology, and bring more balance to the region."

Brazilian government spokesman Marcelo Baumbach added that the new institution [i]"will play a significant role in regional integration and in consolidating th[b]...

South America launches rival to the IMF, World Bank

Chavez earlier blasted the IMF, describing it as "a curse" on the region, and slammed its "shock politics that have spread hunger, misery, poverty and violence to our peoples."

Brazil's Lula said the regional bank "will finance projects in key economic sectors such as infrastructure, science and technology, and bring more balance to the region."

Brazilian government spokesman Marcelo Baumbach added that the new institution "will play a significant role in regional integration and in consolidating the Union of South American Nations."

Ecuador's Correa said that the Bank of the South will help Latin America break out of its financial chains.

"Its a huge step on the road to Latin American integration. We have a common past, now its time we aim for a common future," Correa told reporters.

Bolivia's Morales said the bank would help South America develop its own currency and resist the pressures of international lending institutions that demanded the privatization of state-owned companies in return for their loans.

"With these (new) financial instruments, we can generate equality among our nations. Hope is reborn in our countries with the Bank of the South," he said.

The bank will start operations in 2008 with an initial capital of seven billion dollars.

Based in Caracas, the Bank of the South will have regional offices in Buenos Aires and La Paz.

After the bank was signed into being, the economy ministers of the member countries have 60 days to draw up an agreement on how the bank should be run, an Argentine official said.

[b][i]"The agreement will establish several procedures, including its contribution system and whether the entity will take into account the differences in economic wei