By Edwig Ban
Romania will leave the structures and shareholders of the International Investment Bank in which it is a partner with several former communist states, announced on Saturday the spokesman of the Romanian Government, Dan Cărbunaru. The bank is headquartered in Budapest, Hungary being a loyal friend of the Russian Federation and President Vladimir Putin
“Romania is about to start the procedures for withdrawing from the International Investment Bank (IAB),” Cărbunaru said, after announcing that Romania was closing its airspace for Russian aircraft.
The International Investment Bank is a multilateral development institution that aims 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.
The Bank was established and operates as an international organization based on the intergovernmental 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, together with the Bank’s Charter, which is an integral part of the Agreement. The Agreement Establishing the IIB is an international treaty.
The IIB’s authorised capital amounts to EUR 2 billion.
The Bank’s member states are 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.
The Bank’s headquarters are located in Budapest, Hungary.
IIB specialises in medium- and long-term financing of projects aimed at supporting the economic development of its member states and 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.
IIB securities are currently traded on the Bratislava, Bucharest, Budapest, Moscow, Prague and Vienna stock exchanges.
The Board of Governors is the Bank’s supreme governing body, consisting of representatives from the IIB’s member states. The Board of Directors is responsible for the general management of the Bank’s operations. 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 semi-annual compliance audit review and an annual audit conducted by the international auditing firm EY.
As an international organization, the Bank is not subject to national banking and other regulations; it enjoys immunities and privileges determined by the Agreement Establishing the IIB and corresponding agreements with its member states.
IIB is one of the highest-rated entities across its operating regions with an average A- rating by international rating agencies. Moody’s rates IIB as A3 with a stable outlook, S&P rates IIB as A- with a stable outlook, Fitch rates IIB as A- with a stable outlook.