12:32 | 03/01/2016 Finance - Banking
(VEN) - “Vietnam has played an important role and has been a driving force in all reforms of the International Investment Bank (IIB),” said IIB Chairman Nikolay Kosov at the 104th IIB Council Meeting that took place recently in Hanoi.
Vietnam joined the IIB in 1977. By August 1, 2015, Vietnam’s committed chartered capital at IIB was €4.7 million, of which Vietnam had contributed €3.67 million, equal to 1.21 percent of the total amount of chartered capital that had been contributed to the bank until that time. The State Bank of Vietnam (SBV) plays the role of a representative for the Vietnamese government at the IIB. Nikolay Kosov said that for the last two years Vietnam had increased its capital contribution to the IIB by four times. Vietnam’s capital contribution to the IIB while not high is important.
SBV Governor Nguyen Van Binh said that after 45 years of operations, the IIB has developed from a small-sized multilateral development bank and become a modern international financial institution meeting global standards. “The IIB has provided Vietnam with active support through approving the provision of loans and funds for many projects, increasing commercial funding, and seeking partners to raise more capital for Vietnam. The IIB’s support has contributed to the growth of the Vietnamese economy and social security in Vietnam,” Binh said.
The IIB and SBV jointly organized a business forum on “Vietnam - Global opportunities for sustainable local development” with the participation of experts from Vietnamese ministries, sectors, international organizations, business associations, domestic and foreign banks and businesses. The forum addressed matters related to the actual situation of small and medium-sized enterprises and measures to promote their development, the potential for regional and urban development in Vietnam, and proposals of the IIB and related partners regarding their participation in supporting Vietnam’s development priorities.
In the recent period, the IIB has actively coordinated with Vietnam to build and implement a national strategy for the country, and achieved good initial results. The bank has approved loans totaling €15 million for the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and is completing necessary procedures to provide a US$20 million loan for the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV). In the field of project funding, the IIB is promoting its participation in providing funds for large projects in Vietnam, especially in infrastructure, and energy. In foreign trade, the IIB will increase commercial assistance for Vietnam to expand external economic relations. In terms of raising capital, the IIB has proposed the issuance of its bonds in Vietnam and will use this source of capital to fund and reinvest in on-site projects to contribute to boosting the Vietnamese economy.
The IIB was an international financial institution established in 1970 as part of the former Council for Mutual Economic Assistance. Today, its members include Bulgaria, Hungary, Vietnam, Cuba, Mongolia, Romania, Russia, the Czech Republic, and Slovakia. Its major task is providing medium and long-term loans for investment programs and projects in member countries. By the end of this October, the IIB’s chartered capital was €1.3 billion, with €302.61 million contributed by member countries.