What is the IIB?
The International Investment Bank (IIB) is a multilateral development bank, founded in 1970 with headquarters in Budapest (Hungary) and carries out its activities on the basis of intergovernmental Agreement Establishing the IIB.
Its mission is to support the economies of its member states. Main directions for its activities are the support of the medium-sized businesses and participation in financing socially significant infrastructure projects.
IIB is focused on medium- and long-term financing of projects aimed at supporting the development of the economies of IIB member countries with positive social, environmental and economic impacts. The Bank provides loans directly, in cooperation with other financial institutions, or through partner banks.
Who are members of the IIB?
The member states of the Bank are: the Republic of Bulgaria, Hungary, the Socialist Republic of Vietnam, the Republic of Cuba, Mongolia, the Russian Federation, Romania, the Slovak Republic and the Czech Republic.
In what countries does the IIB operate?
The IIB operates in its member states: the Republic of Bulgaria, Hungary, the Socialist Republic of Vietnam, the Republic of Cuba, Mongolia, the Russian Federation, Romania, the Slovak Republic and the Czech Republic.
What differs the IIB from a commercial bank?
The IIB is a multilateral development bank, which does not operate for profit but assists in its member states' economic development primarily by supporting SME sector, developing export-import operations and fostering trade and economic relations between them.
The Bank as an international entity and is not subject to national banking regulation. A 0% VAT is imposed on the Bank and it is granted diplomatic privileges and immunities.
Where is the IIB located?
The IIB's headquarters is located in Budapest (Hungary)
Who is the head of the IIB?
Since 2012 IIB has been headed by the Chairperson of the Management Board Nikolay Kosov.
Who can become a member of the IIB?
The IIB's distinctive feature is its supranational status: it includes Asian, European and Latin American countries. The Bank is a special legal entity which is not subject to general legislation covering other legal entities in the territories of the Bank's member states.
Membership in the Bank is open to other countries, interstate banking, financial and economic organisations. Other banking and financial organisation can participate in the Bank's activities on the basis of their special status determined by the Council of the Bank.
Procedure of becoming a member of the Bank is defined by the Article XXI of the Agreement.
Those wishing to join the Bank in accordance with Article 1 of the Agreement may file an official application with the Bank's Board of governors indicating that they share the aims and principles of the Bank's activities and accept all the obligations arising from the Agreement and Statutes of the Bank.
New members are accepted by the Board of governors' resolution.
What is the management structure of the IIB?
The Board of Governors is the Bank's supreme collective governing body and is composed of the member states' representatives to IIB. The Bank's collective governing body responsible for the general management of the Bank's operations is the Board of Directors. The Management Board is the Bank's executive body where members are appointed by the Board of Governors. Audit of the Bank's operations is carried out by the Audit Committee that comprises the representatives of the IIB's member states appointed by the Board of Governors.
What are the advantages of work with the IIB?
- Status of an international financial organization and status of a privileged partner of member states. The founding documents of the Bank provide for a special mode of banking regulation;
- Interstate status of the Bank and sustainable support from governmental authorities of member states;
- Wide geographic coverage – the IIB area includes both EU countries and prospective Asian markets;
- Individual approach to considering transactions and projects subject to regional peculiarities of member states, as well as integration projects between member states;
- More flexible opportunities of IIB compared to commercial banks with respect to terms and conditions of financing.
How to apply to the IIB for financing?
Customer Relations Department
(tel.: + 36 1 727 89 11, +7 495 604 7416, e-mail: email@example.com)
Who can become a client of the IIB?
Corporate clients and financial organizations sharing the principles and priorities of IIB and meeting the general and financial criteria of IIB, including:
- corporate clients focused on creating added value and sustainable development of member states, which implement investment projects in territories of member states;
- national development banks;
- banks with governmental ownership and/or ownership by national and international development banks;
- commercial banks focused on financing priority economic areas in member states and having leading positions in regional markets;
- leasing companies offering leasing products in sectors of the economy which are of priority for member states;
- microfinancing companies working with priority segments of the economy;
- foundations, activities of which comply with the principles and priorities of the IIB.
What is the legal basis for zero VAT rate on the goods and services intended for the use by the IIB?
According to the following documents, goods (works, services) appointed for the IIB's work are imposed a 0% VAT: Decree № 455 of 22.07.2006 issued by the Government of the Russian Federation “On the approval of the Rules of applying a 0% VAT when purchasing goods (works, services) for official purposes by international organizations and their representatives that are carrying out their activities on the territory of the Russian Federation" and the Directives issued by the Ministry of Foreign Affairs of the Russian Federation № 3913, the Ministry of Finance of Russia №19n of 24.03.2014 "On the approval of the List of the international organizations and their representations carrying out their activities on the territory of the Russian Federation that pay 0% VAT when purchasing goods (works, services) for official use", the Bank is subject to 0% (zero) VAT.
What projects are not financed by the IIB?
- Projects not focused on sustainable development of IIB member states;
- Projects conflicting with the strategy, mission and priorities of the Bank.
What is the IIB's policy in the field of corporate social responsibility?
The IIB is governed in its activities by the principles of corporate social responsibility (CSR) that enables the Bank to fulfill its objectives of an international development institution in an efficient manner. Financing socially-focused, energy and resource-efficiently projects as a matter of priority, the IIB contributes to the goals of sustainable development that is in compliance with national interests of member states and contributes to improving the life quality of their citizens. Activities of the Bank are intended to promote better environment and soften consequences of global climate changes.
Goals, objectives and priority activities of the IIB in the CSR area are defined by the Corporate Social Responsibility Policy approved by the Board of IIB.
How to report corruption, fraud or other breaches?
In accordance with the «Procedure for receiving and handling complaint reports in the IIB» every person can file a formal complaint concerning suspicions of and/or offences occurred in the course of the IIB's activities. Such complaint may relate to corruption, fraud, money laundering as to both the IIB itself and its employees and counterparties.
The complaints can be sent to the IIB via the following channels:
Who regulates the activity of the Bank and what regulations do we observe?
Pursuant to Article 12 of the Bank's Establishment Agreement dated July 10, 1970, registered with the UN Secretariat under No. 11417 of December 1, 1971 and ratified by the Ministry of Foreign Affairs of Russia, activity of the Bank is regulated by the above-mentioned Agreement, the Articles of Association of the Bank, and rules issued by the Bank within its competence. The Bank, based on the supernational principle of its legal capacity adheres to generally accepted principles and standards of the international laws.