The relocation of the headquarters of the International Investment Bank (IIB) to Budapest will further bolster the role of Hungary and Budapest as an international financial center, Minister of Finance Mihály Varga said after he had signed the related agreement with IIB Chairman of the Management Board Nikolay Kosov.

The decision will result in advantages for the Bank, good results for shareholders and new opportunities for stakeholders from the Hungarian financial and economic sectors.

The opening of the Bank’s new headquarters will enable the financial institution to join the European financial network in a more efficient manner, build an extensive network of relations with European financial institutions and other international development banks. As a result, the IIB may become a key factor behind Central European projects, corporate lending and international finance.

The Minister called the fact that an international development bank in the phase of expansion had picked Hungary as the location for  a new headquarters a “logical step”, as the country provides adequate working conditions and solid, sustainable economic growth. The financial institution will bring to and retain in Hungary highly qualified financial professionals, and it may also help domestic enterprises gain ground on international markets, the Minister pointed out. Currently the headquarters of five large international development banks are situated in the European Union, none of which is in the CEE region. Therefore, moving the IIB to Budapest is a major step forward and a sign of recognition for Hungary’s economic policy.

Nikolay Kosov said he believed the relocation of the headquarters is a historic step. Several factors were instrumental in the decision of shareholders: the location opens up the opportunity for the Bank to foster cooperation with international financial partners, it secures additional funding for the Bank’s activities and it strengthens the trust of credit rating agencies in the institution.

(Ministry of Finance)