IIB signs cooperation agreement with OTP Bank

The Moscow-based International Investment Bank (IIB) signed a strategic cooperation agreement with OTP Bank, Hungaryʼs biggest commercial lender, at a business forum in Budapest on Friday (June 24) , Hungarian news agency MTI reported.

“The signed document mentions various areas for close collaboration, specifically, joint participation in various projects through a number of financial instruments, cooperation on financial markets, support of trade finance, exchange of best practices and others, all based on a long-term, mutually beneficial partnership,” the IIB said.

Originally formed in 1970, as a Soviet-bloc alternative to western international financial institutions, the IIB offers mid- and long-term credit for development projects. Hungary left the bank in 2000, citing insufficiently efficient and transparent operations, the Hungarian Economics Ministry has said. But the country rejoined the IIB early last year, at which time Hungaryʼs Economics Ministry said the bank had been radically restructured so that it forms its strategy and operations in close cooperation with other big international financial institutions, such as the EBRD, the EIB and the World Bank.

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The agreement between the IIB and Hungaryʼs OTP Bank “will allow both parties to bring their resources together for a greater impact,” the IIB statement said.

IIB noted that it has enjoyed “a good working relationship” with OTP Bank in the past, too.

The IIB said it also signed on Friday a memorandum of understanding with H2Q, a property management company, on financing for an infrastructure project related to real estate management of the Budapest University of Technology and Economics. The IIB said it intends to provide H2Q with a €15 million, 14-year credit line.

The business forum on Friday, called “Supporting Economic Growth in Hungary and the CEE Region”, was organised in the framework of a three-day Council Meeting of IIB in the Hungarian capital.

Since Hungary renewed its membership in the IIB last year, the country has reportedly contributed €40 mln to the bankʼs share of capital to make it the third-biggest stakeholder in the lender.

The IIBʼs other members are Bulgaria, Cuba, the Czech Republic, Mongolia, Romania, Russia, Slovakia and Vietnam.

The main directions for IIBʼs activities are providing support for SMEs and financing socially significant infrastructure projects, according to the IIB statement.

Source: bbj.hu

Author: Hassan Khazaal

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