IIB wraps up its 104th Council Meeting in Vietnam

14:46 | 05/12/2015
International Investment Bank has successfully held its 104th meeting in Hanoi and marked its return as an international development bank through drastic institutional reform, aiming at a total new level of development.

 

The  highest  governing  authority  of  the International  Investment Bank (IIB),  the  IIB Council, held  its 104th meeting  in Hanoi last Friday, marking the formal completion of IIB’s institutional reform, which started in 2012. All member states of the Bank have now adopted the new statutory documents, which will come into force after once all members have approved.
 
The meeting boasted the bank’s achievement of financial stability and  balanced  growth  dynamics  of  the  main  indicators,  including  IIB’s  loan  and  investment activities. IIB’s  assets  have now  exceeded EUR 800 million,  and  in  the past  three years,  IIB  has  signed  loan  and  guarantee  agreements worth of EUR  400 million in total,  of which more  than EUR120 million were committed  in 2015 alone. 

IIB has also continued attracting long-term funds, both from large international financial groups such as Credit Suisse and Rosbank (Société Générale Group) and by issuing bonds on the local debt capital markets of its member states.  
 
IIB’s  new  instrument, the trade  finance, also  received  a  positive  assessment,  as  the  bank contributes to the strengthening of ties between its members and third countries, at the same time expanding the geography of its operations. Since the beginning of the year, IIB has signed 14 trade finance deals. 

All the  participants  of  the  104th Council Meeting  agreed  that  such  growth  dynamics  and  results allow forecasting of further progress of IIB. In line with this, a range of crucial decisions was adopted,  including  an  update  to  the  formula  for  distribution  of  shareholders’ stake  in  the registered  capital, which will  lead  to  a  transparent mechanism  for  calculation  of  the  potential new members’ stake and will provide  the current  shareholders with an opportunity  to  increase their  stake  in  the  registered capital. Also,  changes were  adopted  in  relation  to  some  of  IIB’s internal policies, aiming  to further  improve  its function as a development bank. 

“These developments will serve as a basis for continuing growth of IIB’s activities in the region for years to come,” said Nikolay Kosov, chairman of the IIB Board.

IIB is a multilateral development bank found in 1970, striving to support the economies of its member states through direct project financing as well as through financial intermediaries, while partnering with leading financial institutions. There are currently nine shareholders of the IIB, in the territories of which it invests in, including Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam.

Vietnam joined IBB in 1977. Until the late 1990s, IIB was very active in financing various projects worth up to EUR40 million to support the local’s restructuring and development in the post-war era.

Right after the period of inactivity due to the geo-political fluctuations in the member countries and when IIB re-launched in 2012, IIB has resumed its activities in Vietnam with a new country strategy where the bank focuses on lending to local SMEs, via local financial institutions and seeks to partner with international financial institutions to co-finance various projects in infrastructure, trade and industrial sectors in Vietnam.

“Vietnam has always been an active and responsible member of the bank. We have taken part in all of the discussions and been supportive to all the reform measures to turn IIB into an international financial organisation operating in accordance with international standards,” said the State Bank of Vietnam Governor Nguyen Van Binh at the meeting. 
 
The Council Meeting was  followed  by  the business  forum featuring Vietnam  –  Global  Opportunities  for  Sustainable  Local, courtesy of Vietnam’s third biggest lender, in terms of assets, BIDV, and StoxPlus – the country’s leading financial and business information corporation.  The  event  brought  together  leading  international  financial  institutions, and both government and  business  representatives from Vietnam  and  other  countries, to discuss and identify the challenges and opportunities with regards to the development of Vietnam’s small and medium-sized enterprises (SME) sector. 

During the two interactive thematic sessions, opportunities for cooperation between Vietnamese and foreign institutions were examined. Ultimately, the event brought together a large international audience and helped identify several potential investments, in which IIB can offer its support and services. 
 
The IIB Board also held a series of high-level bilateral meetings, notably with Deputy  Prime  Minister  Vu Van Ninh, and with top officials from the Ministry of Finance, Ministry of  Industry and  Trade,  and Ministry  of  Planning  and  Investment.  During the talks, the parties discussed prospects for collaboration with a focus on implementation of projects in the countries where IIB presents.  

At the Open Session,  the bank  signed  two  important documents: a $20 million  loan agreement with  BIDV  to  support  the SME  sector and a memorandum of understanding (MoU) on cooperation with Thanh Hoa province. A further signing of an MoU on cooperation with the Danang People’s Committee also took place on December 5. Additionally, the bank awarded the World Wide Fund for Nature (WWF) with a grant of $40,000 for the Wild Asian Elephants Programme in Vietnam.

By By Trang Nguyen

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