Bank of South To Have 1 Vote Per Nation Framework-Ecuador President

Mon, Dec 10 2007, 13:16 GMT
http://www.djnewswires.com/eu

Bank of South To Have 1 Vote Per Nation Framework-Ecuador President

BUENOS AIRES -(Dow Jones)- The Bank of the South, the new multilateral development bank inaugurated here Sunday evening by the leaders of seven South American nations, will be administrated on a one-vote-per-country framework, Ecuadorean President Rafael Correa said Monday.

"There is a consensus for one vote per country," Correa said. "Brazilian President (Luiz Inacio) Lula (da Silva) has agreed to this."

Correa was speaking at a press conference in Buenos Aires, where he is attending, among other ceremonies, the inauguration of Argentine President Cristina Fernandez.

He was responding to a question on whether the bank would follow the models of other multilateral institutions such as the World Bank, where votes are apportioned according to each country's contributed capital.

Details are thin on the structure of the new bank, a brainchild of Venezuelan President Hugo Chavez. Although leaders talk about $7 billion in start-up capital, there isn't yet any agreement on how much each country will submit.

One key issue that could determine how much each is willing to put up is the voting structure to which Correa referred Monday.

Separately, Correa also said that he thought a single currency for Latin America "was absolutely viable." He said the only obstacles to a common currency were political, not technical.

-By Michael Casey, Dow Jones Newswires; Michael.j.casey@dowjones.com, 54-11-4313 1918