Govts give rise to Banco del Alba

Venezuela, Bolivia, Cuba and Nicaragua have launched the Banco del Alba with an initial capital of US$1bn provided by member nations, government news services from the respective countries announced on their websites. The bank will function with solidarity as its main principle, with priority given to social projects, Bolivia's government news service ABI reported. "The important thing [for the bank] will be people, not markets," said Cuban VP Carlos Lage. "While stock markets are falling, we in the Alba are inaugurating banks. We have nothing to be jealous of on Wall Street," Venezuelan premier Hugo Chávez said on his government's website. The creation of the bank is estimated to benefit some 53.6mn people in the countries that Banco del Alba will serve, which will increase as more countries incorporate into the bank, Venezuelan finance minister Rafael Isea said, adding that two months would be sufficient time to establish the bank's platforms for human resources, technology, finance and legal systems. The member countries form part of the integration project Bolivarian Alternative for the Americas (Alba) founded in 2004 by Venezuela and Cuba. At the summit in which the bank was formed, the government heads also created the Alba power company whose goal is to increase security while also helping integrate the region's energy sectors. This will involve the exploration, development and refining of crude oil, including that of an area that is believed to have 10B barrels of reserve, ABI reported without naming the area.