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December 12, 2007 |
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* PARAGUAY: Inks Foundation Act; Launches Bank of the South The national leaders of Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela have launched Sunday the new Banco del Sur development bank, the Financial Times reports. The bank's launching was initially set for June 26 but was moved due to capitalization issues. According to the FT, the bank has about US$7 billion in capital, which came from the founding members. Colombia and Chile has not entered the venture. The bank, advocated by Venezuelan President Hugo Chavez, will be established to rival the services offered by the International Monetary Fund and the World Bank, on much lower rates and better financing conditions. Critics called the bank a waste of effort given the established presence of the institutions, like the IMF and the Word Bank, which it wants to compete with. The finer details of the services that the bank will be providing still need to be ironed out by the finance ministers of the countries involved. The ministers have two months to translate into operations what have been agreed on paper, the FT says. * * * Moody's assigned these ratings on Paraguay: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- LC Currency Issue Moody's have placed the rating under review for likely upgrade. |
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