South American representatives are preparing to open a new regional bank that will supersede the World Bank and International Monetary Fund.

The BBC reported Sunday that the new Southern Bank will support economic and social projects throughout the region thanks to funding from countries like Argentina, Brazil and Venezuela.

Economists said that the bank, which will operate out of the Venezuelan city of Caracas, was necessary after a series of failed moves by IMF and World Bank officials.

However, Argentine economist Alan Cibils offered skepticism that the Southern Bank will be able to find great success because of the rampant corruption in the region.

"It'll be very difficult to have an institution that operates with transparency and efficiency given the levels of corruption in the governments that are sponsoring this institution," he told the BBC.

The representatives are currently in Argentina to sign the key agreements for the new bank, that they hope will hold $7 billion in funds for regional efforts.  // Copyright 2007 by United Press International



Publication date: 10 December 2007   

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