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Finance Minister: Russia-based IIB’s Relocation to Budapest Presents New Opportunities

MTI-Hungary Today 2019.09.18.

Finance Minister Mihály Varga, at a business forum in Budapest on Tuesday, highlighted the Hungarian capital’s strengthening role as a financial centre, saying that the relocation of the Russia-based International Investment Bank’s headquarters to Budapest had boosted the institution’s global recognition and competitiveness.

The IIB’s establishment of its headquarters in Budapest is a “significant recognition” for Hungary’s economic policy, Varga told the forum organised by the bank and the Finance Ministry. Setting up the HQ in Budapest will prove favourable for the IIB‘s shareholders and Hungary as well and will also present new opportunities to Hungarian businesses, he added.

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Given that none of the five major international development banks with headquarters in the European Union are based in the CEE region, the IIB’s move to Budapest will strengthen the financial role of Hungary and the region as a whole, the minister said.

Varga also noted that the IIB’s move to Budapest has prompted Fitch Ratings and Standard and Poor’s to raise their ratings for the bank by one notch. This, combined with the bank’s recent bond on the Budapest Stock Exchange, will help the IIB increase its profits, which will benefit all of its shareholders, including Hungary, he said.

In the featured photo illustration: IIB president Nikolay Kosov with Finance Minister Mihály Varga. Photo by Ministry of Finance