It looks like Russia has won the support of state members of International Investment Bank (IIB) for its effort to revive the former backbone bank of the socialist camp. The member states seem ready to bolster consolidation of IIB and International Bank for Economic Cooperation.
The further destiny of the former backbone bank of the socialist camp was the prime concern at the Friday talks of Russia"s PM Mikhail Fradkov and IIB Board Chairman Andrey Serebryakov. Russia"s proposal is to consolidate it with the International Bank for Economic Cooperation.
Member states of the Council for Mutual Economic Assistance founded International Investment Bank in 1970 with the former USSR ownership of 44 percent in it. Russia"s stake widened to 58 percent on withdrawal of Poland and Hungary. Today"s members of IIB are Russia, Bulgaria, Romania, Czechia, Slovakia, Cuba, Vietnam and Mongolia.
On Friday, Fradkov and Serebryakov focused on consolidation of IIB and International Bank for Economic Cooperation on the basis of IIB. "Russia views the bank as the backbone, first of all on the market of Eastern Europe. The Eastern Europe"s countries have great trading deficit with Russia that supplies gas to them. And IIB could help them to enter our market," said a source with the president"s administration. Serebryakov is tipped as the chief of the united bank, sources with the government"s staff said.
The consolidation will be finally decided in the mid.-May, in time of the board meetings of the banks. Once the member states officially back up the merger, a new bank giant with the stock capital of #8364;600 million and unique status will appear in Europe.
In addition, the status of the new bank will be truly unique. Notwithstanding that the sole office of IIB is located in Moscow, it is no resident of Russia. The bank has no license of the CBR and is not subordinate to it. Irrespective of their location, the assets, documents and operations of IIB are immune from any administrative or legal procedures.
All the Article in Russian as of Mar. 13, 2006