International Investment Bank (IIB) is a multilateral development institution with headquarters in

Budapest Budapest (, ; ) is the capital and most populous city of Hungary. It is the ninth-largest city in the European Union by population within city limits and the second-largest city on the Danube river; the city has an estimated population ...

, Hungary. It was established in 1970 and operates as an

international organisation An international organization or international organisation (see spelling differences), also known as an intergovernmental organization or an international institution, is a stable set of norms and rules meant to govern the behavior of states an ...

based on the intergovernmental ''Agreement Establishing the International Investment Bank'' dated 10 June 1970, registered with the

United Nations Secretariat The United Nations Secretariat (french: link=no, Secrétariat des Nations unies) is one of the six principal organs of the United Nations (UN), The secretariat is the UN's executive arm. The secretariat has an important role in setting the a ...

on 1 December 1971 under number 11417, as amended and restated from time to time. IIB specialises in medium- and long-term

financing Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm use ...

of projects aimed at supporting the economies of its members that would have a significant positive social, economic and environmental impact. IIB offers direct financing and provides loans in partnership with other

Financial institution Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...

s as well as through partner banks.

Member states

Current members

* * * * * * * * *

Former members

* (1970–1993) * (1970–1990) * (1970–2000) * (1970–1991) The IIB statutory documents allow for the admission of either

Sovereign state A sovereign state or sovereign country, is a political entity represented by one central government that has supreme legitimate authority over territory. International law defines sovereign states as having a permanent population, defined te ...

s or international organisations as members.

Management

The

Board of Governors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organi ...

is the Bank's supreme collective governing body, consisting of representatives from the IIB's member states. The board of directors is responsible for the general management of the Bank. The Bank's executive body is the Management Board, whose members are appointed by the Board of Governors. The Bank's activities are controlled by the

Audit committee An audit committee is a committee of an organisation's board of directors which is responsible for oversight of the financial reporting process, selection of the independent auditor, and receipt of audit results both internal and external. In a U ...

, which is made up of representatives from the IIB's member states appointed by the Board of Governors. The Bank's

Financial statement Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to un ...

s are confirmed by a half-year compliance Audit review and an annual audit conducted by international auditors EY.

History

Soviet era

The agreement establishing the IIB was signed by the member states on 10 July 1970 and registered with the UN Secretariat under number 11417. The Bank began its activities on 1 January 1971. The member states of the Bank at the time of its foundation were: the

People's Republic of Bulgaria The People's Republic of Bulgaria (PRB; bg, Народна Република България (НРБ), ''Narodna Republika Balgariya, NRB'') was the official name of Bulgaria, when it was a socialist republic from 1946 to 1990, ruled by the ...

, the

People's Republic of Hungary The Hungarian People's Republic ( hu, Magyar Népköztársaság) was a one-party socialist state from 20 August 1949 to 23 October 1989. It was governed by the Hungarian Socialist Workers' Party, which was under the influence of the Soviet U ...

, the

German Democratic Republic German(s) may refer to: * Germany (of or related to) ** Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **G ...

, the Mongolian Democratic Republic, the People's Republic of Poland, the

Socialist Republic of Romania The Socialist Republic of Romania ( ro, Republica Socialistă România, RSR) was a Marxist–Leninist one-party socialist state that existed officially in Romania from 1947 to 1989. From 1947 to 1965, the state was known as the Romanian Peop ...

, the

Union of Soviet Socialist Republics The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...

, and the

Czechoslovak Socialist Republic The Czechoslovak Socialist Republic, ČSSR, formerly known from 1948 to 1960 as the Czechoslovak Republic or Fourth Czechoslovak Republic, was the official name of Czechoslovakia from 1960 to 29 March 1990, when it was renamed the Czechoslovak ...

Post-Communist era

In 2019, IIB relocated its headquarters from

Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 millio ...

, Russia to Budapest, Hungary. Following the

2022 Russian invasion of Ukraine On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. ...

, the Czech Republic announced it would speed up its planned departure from the IIB, and Romania started the process to withdraw as well.

References

External links

* {{International development and investment banks Multilateral development banks Banks established in 1970 Supranational banks Comecon Banks of the Soviet Union