Trade and economic cooperation
International Investment Bank pays special attention to multilateral projects that promote the development of trade and economic cooperation between IIB member states.
We distinguish several measures for supporting trade and economic cooperation:
• Financing of multilateral (including integrational) export-import projects with the participation of economic operators from several IIB member states;
• Financing of projects aimed at the sustainable development of IIB member states;
• Financing of exporters of goods and services with high added value and supporting them in entering foreign markets (including third countries markets);
• Support for import in IIB member states if such import contributes to the sustainable development of member countries and if it complies with such priorities as innovation, modernization and resource-saving.
IIB also uses following ways of supporting trade and economic cooperation:
• Short-term financing of foreign trade contracts through international financial institutions and commercial banks in order to support export-import transactions (short-term pre-export financing and import financing).
• Irrevocable off-balance sheet commitments for up to 2 years (bank guarantees / counter-guarantees / standby letters of credit / unconditional reimbursement obligations) on behalf of the financial institutions belonging to IIB member states in favor of economic operators in other countries, as well as on behalf of financial institutions of third countries for the benefit of economic operators of IIB member states which export goods / services in these third countries.
Club of export agencies
The International Investment Bank and Export Credit Agencies of Russia and four East European countries of the member states of the Bank signed a Multilateral Memorandum on Cooperation. The Participants of the Memorandum are — Bulgarian Export Insurance Agency BAEZ, OJSC «Russian Agency for Export Credit and Investment Insurance», EximBank S.A. Romania, Export Guarantee and Insurance Corporation EGAP (the Czech Republic), Export-Import Bank of the Slovak Republic. Later, the Hungarian Export-Import Bank (Exim) also acceded to the Memorandum. According to the document, its participants pool efforts to support and develop foreign trade operations in the countries-participants of the Memorandum. The arrangements are not only limited by the export-import operations between the six countries, but also presume the promotion of products and services of the national producers in the third countries, especially on the markets of other members states of the IIB. The model of cooperation presupposes that national agencies will carry out the insurance coverage of the projects in the interest of the relevant member states and the International Investment Bank will provide financing through its own funds as well as attracting resources from its partners. The Memorandum also provides regular consultations and exchange of experience including the issues of state regulation of foreign trade operations.