IIB prepares to set up European unit in Budapest

IIB prepares to set up European unit in Budapest
By bne IntelliNews June 20, 2018

A delegation from Moscow-based multilateral lender the International Investment Bank (IIB) visited Budapest on June 18 as it prepares to set up its new European unit in the Hungarian capital, the bank said in a statement. 

A memorandum of understanding was signed between the Hungarian government and an IIB delegation led by the chairman of the development bank’s board Nikolay Kosov. 

The bank said on June 18 that concluding the document is one of the initial steps towards practical implementation of decisions taken during the bank’s 109 council meeting in Yaroslavl on June 4-5 on the establishment of the new European front office, IIB European Unit. 

“Whilst assessing possible locations for IIB European Unit International Investment Bank’s Board was unanimous in its choice of Budapest as a platform for this new strategic business unit of the bank,” Kosov said according to the statement.

“This is a vital step towards IIB new strategy implementation that was launched at the beginning of the year and provides for a comprehensive expansion of activities in European markets. Today’s signing does not only fully meet interests of European shareholders of IIB, but is also important for other geographies of the Bank in view of implementation of joint projects and programmes.”

The IIB plans to gradually launch the activities of the IIB European Unit, and expand its functions later. The new office will identify projects, carry out primary assessments and monitor further implementation, as well as coordinating IIB’s European treasury and funding activities. 

Kosov held consultations with Hungarian Finance Minister Mihály Varga during his visit to Budapest, and discussed the IIB’s strategic targets in the region.

The IIB was founded in 1970 to foster economic cooperation between the COMECOM countries. Today it is a multinational development bank that includes Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam amongst its members. The bank has undergone major modernisation since late 2012.

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