June 28, 2007 (LPAC)--Uruguay's President Tabare Vasquez has decided that his government will participate in the discussions to found the Bank of the South, the new regional financing entity that will offer credit for development projects. This was announced June 27 by Foreign Minister Reinaldo Gargano, a strong proponent of regional integration who has supported the Bank's creation inside the cabinet, in opposition to the pro-IMF Finance Minister Danilo Astori.

Up until now, Uruguay has not been involved in the debate on the bank's creation, precisely because of factional tensions inside the Vasquez cabinet. But when the Espectador radio network suggested that the decision was a "personal victory" for Gargano, due to Astori's "reticence" about the project, Gargano firmly stated that "this was a decision of the Executive branch"--not of anyone else. President Vasquez felt strongly, Gargano said, that since the governments of Ibero-America are now involved in a process of integration, "it made no sense for Uruguay not to be involved." Uruguay wants to be involved in the decision-making about how the bank will function and how it can be made to work for the benefits of all of its members, he said.