Further to the Bank’s previous statements and latest requests from our investors, IIB hereby reconfirms that it faithfully attempts to meet its contractual payment obligations under its EUR1.5b Medium-term Note (MTN) Programme.

The Bank has undertaken numerous attempts to find a new paying agent (including before OFAC restrictions were imposed); to date none have expressed the willingness to assume this role. Given that fact, the Bank openly invites its investors to assist in bringing in a counterparty that would be capable to replace Citibank NA, London branch as a Principal Paying Agent under IIB MTN Programme.

IIB restates that due to external unilateral restrictions it still has no access to all of its EU financial assets, its correspondent accounts remain closed, all EUR/HUF/USD/RON funds in the EU financial institutions remain unlawfully frozen. Unfreezing/unblocking of the Bank’s cash and assets in the EU financial institutions, including in Euroclear SA/NV, will only be possible if two major conditions are simultaneously met:

• Decisions of relevant financial institutions to unblock IIB’s funds;
• A new OFAC license(s) for payments to bondholders.

The fulfilment of the above conditions in the current environment may be facilitated by its investors.

The Bank accentuates that total amount of its blocked/frozen funds exceeds the total amount of the contractual payment obligations under its MTN Programme and that IIB’s payment ability as such solely depends on the European financial institutions.

Potential solution of those principle issues could pave the way for a comparatively realistic plan of further actions.

***

[As another attempt to fully and timely honour its HUF payment (ISIN XS2237392027) under IIB MTN Programme (28/09/2023) IIB has officially contacted MBH Bank Nyrt. (Hungary) which is still questionably blocking HUF 7 664 129 748 with the request to remit IIB’s funds in the whole amount with value date 27/09/2023 to Citibank NA, London as the current paying agent.]