Russian development bank IIB signs off on debut Hungarian credit facility

Russian development bank IIB signs off on debut Hungarian credit facility

By bne IntelliNews August 9, 2017

The Moscow-based International Investment Bank (IIB) announced on August 9 that it has signed off on its debut credit facility in Hungary.

The Russian-led IIB decided around five years ago to turn around the moribund development bank, whose activities had tailed off since the collapse of communism in Eastern Europe. Hungary applied to join regional peers in the IIB in late 2015.

The deal hands Hungary’s major commercial lender TakarekBank credit of up to HUF4bn (€13mn). The goal of the facility is “to support the expansion of the IIB’s portfolio of lending in Hungarian forint,” the development bank said. The credit line has a tenor of three years.

Following an IIB council meeting in Romania in June, and the adoption of the bank's Bucharest Strategy, the IIB has stepped up its activities in Hungary, and claims to have already signed a number of deals.

The transaction with TakarekBank, the umbrella bank for Hungary’s saving cooperatives network, will lead to a strong and promising relationship with Hungarian financial institutions, the IIB statement reads.

Founded in 1970, the IIB's current shareholders include Bulgaria, Cuba, the Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. The bank has undergone major modernisation since late 2012 and is rated ‘BBB’ (outlook stable) by S&P, ‘Baa1’ (outlook positive) by Moody’s, ‘BBB’ (outlook stable) by Fitch and ‘A’ (outlook stable) by Dagong.

Read in IntelliNews Pro

Get IntelliNews Pro

Related Articles

Russia’s central bank cuts key rate by 100bp to 17% in cautious move, defies calls for deeper easing

The board of the Central Bank of Russia (CBR) at the policy meeting of September 12 resolved to cut the key interest rate by 100 basis points from 18% to 17%, according to the regulator’s press ... more

Ukraine’s non-performing loan share falls to decade low as banks post steady profits

The share of non-performing loans (NPLs) in Ukraine’s banking sector has fallen to its lowest level in a decade, even as the country’s lenders continue to deliver strong profits despite the ... more

Azerbaijan tightens banking operations on foreign financial sources

Azerbaijan has implemented new restrictions on banking operations involving foreign financial sources, with amendments signed by President Ilham Aliyev targeting unregistered foreign financial ... more

Dismiss

Chat with usLiveChat