Banco del Sur Reportedly Taking Shape

If the governments of the participating countries approve terms, Banco del Sur will start operations this year with $7bn in subscribed capital and $20bn of authorized capital, according to wire reports Friday. The news emerged after economy ministry officials from Brazil, Ecuador, Paraguay, Uruguay, Bolivia and Venezuela met in Montevideo. According to reports, Argentina, Brazil and Venezuela will each make a capital contribution $2bn, Ecuador and Uruguay $400m and Paraguay and Bolivia $100m. The proposal will be consulted with Argentina, which had no representation at the meeting after the resignation of the country’s economy minister. The new multilateral will be headquartered in Caracas, with offices in Buenos Aires and La Paz.