The International Investment Bank (IIB) is set to move its entire operations over to Hungary, it has been announced.
The Hungarian headquarters of the IIB will open in the second half of 2019, and according to plans its headquarters will move to Hungary within two to three years.
Mihály Varga, Minister of Finance, made the announcement following talks with Nikolay Kosov, Chairman of the financial institution’s Board.
The minister said the direct presence of the bank will further increase the financial resources available to Hungarian businesses, and Budapest may become one of the most significant financial centers of the Central and Eastern European region.
Minister Varga described the relocation as one of the most important financial news items of the past year. The financial institution’s management board adopted a decision on this last December, and the agreement may be signed as early as in January, he added.
The minister also drew attention to the fact that an important factor behind the IIB’s decision was that Hungary has been one of the most stable states of the region for years. He said the Hungarian economy also did well in 2018: the performance of the economy improved at a rate that had been unprecedented for two decades.
He said there are a number of factors behind this achievement, including the six-year wage agreement, the grants provided for housing projects at a previously unprecedented rate, and the measures serving to eliminate the shadow economy. At the same time, a disciplined fiscal policy was pursued throughout last year.
Minister Varga pointed out that Hungary is now among the world’s ten best investment destinations, pointing out that last year 98 major investments came to Hungary which created 17,000 new jobs, and as a result, the total value of investments increased to above HUF 1,380 billion.