The International Investment Bank (IIB) has for the first time issued a two-year irrevocable reimbursement undertaking in favor of a Czech bank by order of Belarusbank.
The IIB has been providing trade finance support to Belarusbank since 2015 with regard to transactions with the IIB member states (Czech Republic, Slovakia, Hungary, Bulgaria, the Russian Federation), as well as transactions related to the purchase of raw sugar from Cuba. The IIB and Belarusbank have jointly participated in ten transactions to the total tune of EUR 15.6 million.
In 2016 Belarusbank received an award from the IIB Trade Finance Support Program (TFSP) in the nomination “The most active issuing bank in Republic of Belarus”.
In August 2018 IIB set the credit risk limits for Belarusbank with an possibility to issue its reimbursement undertakings and guarantees for the 2-year period (before that maturity was limited by 1 year for such type of operations). The increase of maturity period by IIB facilitates a more flexible approach to structuring of deals and expands the possibilities of the support of export from Eastern Europe to the Republic of Belarus.
For reference
The International Investment Bank (IIB) was established in 1970. The current list of member states/shareholders includes Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russian Federation, Slovakia and Vietnam. As a result of successful operational activity in 2017 the Bank received the following credit ratings: Global Ratings – BBB+ (stable outlook), Moody’s – А3 (stable outlook), Fitch – BBB (positive outlook), Dagong – A (positive outlook).
Communications Division