Chavez and allies launch 'alternative to US-backed lenders'

Hugo Chavez and leaders of six other Latin American nations formally launched a regional development bank Sunday that the Venezuelan leader is touting as South America's answer to US-influenced international lenders.

With $7 billion in expected startup capital, backers say the Bank of the South will offer Latin American countries loans with fewer strings attached than those proffered by the World Bank, the International Monetary Fund or the Inter-American Development Bank. The leaders signed the ''founding act'' of the bank Sunday during a packed ceremony at Argentina's presidential palace. (AP)