What is IIB?
International Investment Bank (IIB) is a multilateral development institution with headquarters in Budapest, Hungary. It was established in 1970 and operates as an international organisation based on the intergovernmental Agreement Establishing the International Investment Bank dated 10 June 1970, registered with the United Nations Secretariat on 1 December 1971 under number 11417, as amended and restated from time to time.
The IIB’s mission is to facilitate connectivity and integration between the economies of the Bank’s member states in order to ensure sustainable and inclusive growth and the competitiveness of national economies, backed by the existing historical ties.
IIB specialises in medium- and long-term financing of projects aimed at supporting the economies of its members that would have a significant positive social, economic and environmental impact.
The Bank offers direct financing and provides loans in partnership with other financial institutions as well as through partner banks.
Who are members of IIB?
The following countries are the Bank’s members: the Republic of Bulgaria, the Republic of Cuba, the Czech Republic, Hungary, Mongolia, Romania, the Russian Federation, the Slovak Republic and the Socialist Republic of Vietnam.
In which countries does IIB operate?
IIB operates in its member states and can also finance projects in other countries, if the implementation of such projects would have a significant positive impact on the Bank’s members.
How does IIB differ from a commercial bank?
IIB is an international financial organisation. Its goal is to promote the economic development of the member states, develop export and import operations, and stimulate trade and economic ties between them. Unlike commercial banks, making profit is not the Bank’s main priority.
As an international organisation, the Bank is not subject to national banking and other regulations; it enjoys immunities and privileges and inter alia is exempt from paying taxes on the territories of its member states. The IIB’s activities are regulated by the Bank’s statutory documents, namely, the Agreement Establishing the International Investment Bank dated 10 June 1970, registered with the United Nations Secretariat on 1 December 1971 under number 11417, as amended and restated from time to time, together with the Bank’s Charter, which is an integral part of the Agreement, that constitutes an international treaty, bilateral agreements between the Bank and the member states, applicable international law, as well as other regulatory documents of the Bank.
Where is IIB located?
The IIB’s headquarters is located in Budapest, Hungary. IIB has a branch in the Russian Federation, in Moscow.
Who is the head of IIB?
The Chairperson of the Management Board, Mr Nikolay Kosov, has managed IIB since 2012.
Who can become a member of IIB?
A distinguishing characteristic of IIB as an international organisation is its supranational status. The Bank has members from Asia, Europe and Latin America. International financial institutions from other countries that share the IIB’s aims and operating principles and assume the obligations arising out of the Agreement Establishing the IIB may be accepted as members of the Bank.New members of the Bank shall be accepted upon a resolution of the Board of Governors.
Are there other forms of participation in the activities of IIB?
States, international financial institutions, banking, economic and financial organisations and funds that share the IIB’s mission, aims, values and objectives may participate in the IIB’s activities as an associate member, associate partner or observer.
The Board of Governors is the Bank’s supreme collective governing body, consisting of representatives from the IIB’s member states. The Board of Directors is responsible for the general management of the Bank. The Bank’s executive body is the Management Board, whose members are appointed by the Board of Governors. The Bank’s activities are controlled by the Audit Committee, which is made up of representatives from the IIB’s member states appointed by the Board of Governors. The Bank’s financial statements are confirmed by a half-year compliance audit review and an annual audit conducted by international auditors EY.
What are the advantages of working with IIB?
- The Bank’s intergovernmental status and solid support from the public authorities of the member states;
- Wide geographical presence: IIB operates in EU countries and the Asian market;
- A tailor-made approach to deals and projects, considering regional specifics as well as integration projects between the member states;
- Flexibility in terms of financing terms and conditions;
- Priority participation in implementation of the Bank’s projects.
How to apply for IIB financing?
Customer Relations Department
Tel.: + 36 1 727 89 11, +7 495 604 7416, e-mail: firstname.lastname@example.org
Who can become a client of IIB?
Corporate clients and financial organisations that share the IIB’s principles and priorities and that meet the IIB’s general requirements and financial criteria, including:
- corporate clients, whose activities provide added value and ensure sustainable development of the member states, and who are implementing investment projects on the territories of the member states;
- international financial institutions;
- national development banks;
- banks with state ownership and /or ownership by national and international development banks;
- commercial banks focused on financing key areas of the economy in the member states and which are leading players in regional markets;
- leasing companies that lease products to key sectors of the economy in the member states;
- funds whose activities comply with the IIB’s principles and priorities.
Which projects does IIB not finance?
- Projects that do not promote the sustainable development of the IIB’s member states;
- Projects that do not comply with the Bank’s strategy, mission and priorities or that involve illegal practices.
What is the IIB’s policy regarding corporate social responsibility?
IIB is guided by the principles of corporate social responsibility (CSR), which enable the Bank to effectively respond to the challenges of an international development institution. By giving priority to the financing of socially oriented, energy- and resource-efficient projects, IIB is pursuing the goals of sustainable development. This serves the national interests of the member states and promotes a high quality of life for their citizens. The Bank’s activities are aimed at helping to improve the environment and mitigate the impact of climate change.
The Bank’s aims, objectives and priority areas are determined by the Corporate Social Responsibility Policy, approved by the IIB Board of Directors.
How to report corruption, fraud or other offenses?
The Bank operates in accordance with the international compliance standards (FATF, Basel Committee on Banking Supervision, OECD).
According to the Procedure for Receiving and Handling Complaints in IIB, any person can contact IIB to report suspected or actual offenses associated with the activities of IIB. Such reports may concern corruption, fraud and money laundering by IIB or by its employees and counterparties.
Complaints can be sent to IIB through the following channels:
Who regulates the Bank’s activities and which standards does it observe?
The Bank’s operations shall be governed by the Agreement Establishing the IIB, bilateral agreements between the Bank and the member states, as well as applicable international law. In accordance with Article 12 of the Agreement Establishing the International Investment Bank dated 10 July 1970, registered with the United Nations Secretariat on 1 December 1971 under number 11417, as amended and restated from time to time, the Bank’s activities are regulated by the above Agreement and the Bank’s Charter, which is an integral part of the Agreement, as well as other regulatory documents of the Bank. Based on the supranational nature of its legal personality, the Bank adheres to universally accepted principles and standards of international law.