OREANDA-NEWS. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ was granted observer’s status in the International Investment Bank (IIB).

Observer’s status was established in IIB this June to ensure effective cooperation with key partners. Vnesheconombank as one of the largest international development institutions and the main partner of IIB on the territory of the Russian Federation was the first institution to have been granted such status. In the near future IIB intend to grant observer’s status to a number of international and national development institutions.

The fact that Vnesheconombank was given observer’s status underlines a strategic nature of partnership between the two financial institutions. Vnesheconombank and the International Investment Bank entered into an agreement on cooperation in January of 2013. The agreement provides for expanding cooperation both on the Russian and international financial markets. IIB is actively cooperating with financing institutions incorporated in Vnesheconombank Group – SME Bank, Roseximbank, the Export Credit Agency of Russia (EXIAR) implementing through them its programs of supporting small and medium-sized enterprises and stimulating foreign economic activity in the Russian Federation.

Vnesheconombank’s expanded partnership with IIB opens up new opportunities for operating on IIB member countries’ markets and promoting Russian economic interests in Central and Eastern Europe and Asia.

The International Investment Bank is an international financial institution established and operating on an appropriate intergovernmental agreement. IIB members are Bulgaria, Vietnam, Cuba, Mongolia, Russia, Romania, Slovakia and Czechia. The Russian Federation has the largest stake in IIB capital (44.7%). IIB’s activity is aimed at funding small and medium-sized enterprises and supporting economic cooperation between IIB member countries. For the most part, the Bank uses agency funding principle. The Bank gives high priority to cooperation with national and international financial institutions. The Bank focuses on opening targeted credit lines for national development banks and IIB member countries’ export-import banks as well as on participating in programs aimed at syndicated funding of investment projects.