International Investment Bank moves to Budapest
In December, the Board of Governors of the International Investment Bank took a decision to move its headquarters to Budapest. Here are five facts you should know about the IIB and the relocation to Budapest.
The bank comprises nine member states. Five of those are EU and NATO members – Bulgaria, the Czech Republic, Romania, Slovakia and Hungary – and they hold more than a 50 percent share in the bank. Russia’s share stands at 47 percent. The bank is governed by the board, which is a made up of representatives from each of the member states, each member having one vote.
Hungary holds the third largest stake in the bank after Bulgaria and Russia. Hungary acquired a 12.78 percent stake in 2016 after renewing its membership in 2014.
As an international development bank, the bank offers domestic companies access to the international market, and further strengthens Hungary's role as a financial center. The total value of the funds provided thus far by the IIB to Hungarian companies is close to 100 million EUR.
Prior to this decision to relocate, there were five, major international development banks based in the European Union, none of them in Central Europe. Since 2017, IIB has seen a number of upgrades and now, according to the credit rating consensus, it falls into an A3/A classification.
The European Investment Bank also enjoys diplomatic immunity. Some have raised questions about IIB’s diplomatic immunity in Hungary, but that’s completely in line with the benefits given to other institutions with international status in Hungary, and comply with the principles laid down in the Bank's Statute and the 1961 Vienna Convention on Diplomatic Relations. The benefits are also in line with international practice. The European Investment Bank enjoys the same immunities and privileges as the European Union in the member states.