International investment bank

History

1970: Creation of the company

International Investment Bank (IIB) was founded in 1970 on the basis of the intergovernmental agreement about formation of International Investment Bank and the Charter. The agreement was signed with Bank member countries on July 10, 1970 and registered in the Secretariat of the United Nations at number 11417. The beginning of activity — on January 1, 1971. The location is the city of Moscow. Bank member countries at the time of the basis: People's republic Bulgaria, Hungarian People's Republic, German Democratic Republic, Mongolian Democratic Republic, Polish People's Republic, Socialist Republic Romania, Union of Soviet Socialist Republics, Czechoslovak Socialist Republic.

The international investment bank began the activity in the conditions of successful development of economy of the socialist countries. The decision about creation of Bank was made during preparation of the Comprehensive program of further deepening and improvement of cooperation and development of socialist economic integration of member countries of the Comecon (C) with the purpose to provide high concentration of resources for capital construction and coordination in their more effective use.

IIB providing long-term and medium-term loans on implementation of the actions connected with the international socialist job specialization, with construction of facilities in other branches of the economy which are of mutual interest to development of economy of member countries of Bank was the main objective.

Creation of the International investment bank was qualitatively new stage on the way of further deepening and cooperation of member countries of Bank, as in the field of the financial relations, and development of the international socialist credit. During the "Soviet" period of the history Bank financed investment projects for the amount more than 7 billion euros.

1971

In 1971 member countries of Bank made the first contribution to the authorized capital of Bank. The paid part for the end of 1971 made 184.2 million transferable rubles. During 1971 Council of the International investment bank and also its Board, made the decision on crediting of 16 objects for the amount 181, 7 million transferable rubles. The direction of the loans granted by Bank corresponded to the tasks provided by the Agreement on formation of Bank.

Despite difficult working conditions in the international currency market the Bank actively performed operations in convertible currencies — US dollars, pounds sterling, Swiss francs, Deutsche Marks, Italian liras. These transactions were made with banks of the socialist countries, International Bank for Economic Cooperation and large banks of England, France, Italy, Germany, Belgium.

From the very beginning of activity the Bank came into close contacts with International Bank for Economic Cooperation and also business relations with the international currency and credit and other international institutes.

With the termination of existence of the USSR and disintegration of the socialist camp the IIB substantially lost target reference points of the activity and nearly two decades was in a stagnation status, having lost both former scales of transactions, and several members.

1991

In 1991 the German Democratic Republic (GDR) left the structure of Bank in connection with the termination of existence of the GDR as subject of international law.

2000

In the 2000th year Poland and Hungary expressed the intention to leave the structure of Bank due to the lack of perspectives as then it seemed, its further development.

Nevertheless, for a number of years in member countries there were discussions about options of updating of bank and opportunities of its new positioning.

2012

In 2012 the new management team which received from participants IIB the mandate on carrying out complex reform came to bank. At the 98th meeting of Council of the bank the medium-term development strategy was approved. IIB support of small and medium business and also financing of infrastructure projects became a key field of activity. These directions relevant for all member countries allow to implement fully the new mission of Bank — assistance to social and economic development, growth of welfare of the population and economic cooperation of member countries.

2013

During 2013 was the restart of Bank including sanitation of the old loan portfolio and disposal of toxic assets, development of the new principles of credit policy, development and deployment of a new organization structure and system of motivation of personnel, creation of a system risk management and compliance, updating of the internal regulatory base, transition to modern international standards of financial institutions in all aspects of activity, development of partnership with the leading National and international financial institutions, increase in recognition of Bank and its integration into the international financial community is carried out. Updating of Bank was completely supported by member countries which in the summer of 2013 made the decision on recapitalization IIB for 100 million euros.

IIB receiving by Bank for the first time in history of the ratings of the investment grade from the leading rating agencies became an evident indicator of success of the carried-out restart. The international Moody's Investors Service assigned to the International investment bank the long-term issuer default rating (IDR) at the level of "A3". The international rating agency Fitch Ratings appropriated IIB long-term IDR at the level of "BBB-" and short-term IDR of "F3".

2014

In the middle of 2014 Hungary declared the desire to resume membership in Bank. The decision on recovery of its membership is made in November, 2014 during the 102nd meeting of Council IIB in Sofia.

The paid-up capital of Bank for July, 2014 makes 272.6 million euros, own means — 374 million euros. According to the solution of Council of the bank of 6/6/2013 the paid-up capital will be increased to 341.3 million euros.