Moscow-based International Investment Bank expands into financing Polish imports

By bne IntelliNews February 16, 2017

The Moscow-based International Investment Bank (IIB) has further expanded its operations under the Trade Finance Support Programme (TFSP) and issued the first loan supporting Polish imports to Russia, the bank said in a statement on February 15.

The short-term $3mn loan was issued to Russian CB LOCKO-Bank to finance the purchase of building and finishing materials made in Poland, being the first Russian-Polish trade financing deal for IIB.

“The Trade Finance Support Programme aims to promote trade and economic cooperation of the Bank’s member countries with a focus on supporting SME export development,” Deputy Chairman of IIB board Denis Ivanov said.

The TFSP includes three main types of activities: issuing irrevocable reimbursement undertakings and guarantees; providing finance under foreign trade contracts up to 12 months; and providing letters of credit in the capacity as a reimbursing and financing bank.

In December 2016, Fitch Ratings upgraded the long-term foreign currency Issuer Default Rating of the IIB to “BBB” from “BBB-” with a stable outlook, in the agency’s first change to the institution’s creditworthiness since assigning a rating in 2013.

The upgrade was driven by the “continuing diversification of the Bank’s operations in Central and Eastern Europe”, “the strengthening of risk management policies” and “the reduction of risks related to business environment”, Fitch said in a statement on December 7.

The IIB is a multilateral development institution founded in 1970 and reformed in 2012. Its current nine members/shareholders are Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam, all participating through intergovernmental agreements.

Related Articles

ECB to seek clarity on Rimsevics' role as Latvian central banker remains mired in scandal

The European Central Bank (ECB) President Mario Draghi said on March 8 that the Eurozone’s central bank will seek clarity on what role the Latvian central bank governor Ilmars Rimsevics has ... more

Azerbaijan finishes takeover of bad IBA assets worth $2.2bn

The Azerbaijani government has finished taking over $2.2bn worth of external debt owned by the country's largest bank, International Bank of Azerbaijan (IBA), APA news agency reported on March 5 ... more

4 a.m., Ferdowsi St, Tehran: the queue starts for the elusive dollar

As Iran gets closer to Persian New Year’s Day (March 21), the great numbers of people wanting to travel abroad for the holidays are becoming increasingly anxious about the apparent evaporation of ... more