Bulgaria to pull out of International Investment Bank

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The Bulgarian government said it will cancel the country's membership of Budapest, Hungary-based International Investment Bank (IIB) and Moscow-headquartered International Bank for Economic Cooperation (IBEC) as part of measures taken by EU members in response to the war in Ukraine, according to a report by SeeNews.

The decision was taken at a meeting of the council of ministers on Wednesday.

The Russian Federation is the biggest shareholder of both international lenders, whose predecessors were set up during the Cold War. Bulgaria is among the founding members of the IIB, which also comprises Cuba, the Czech Republic, Hungary, Mongolia, Romania, Slovakia, and Vietnam.

The bank moved its base from Moscow to Budapest in 2019.

As the end of 2021, Bulgaria was the bank's third-biggest shareholder with a stake of 10.04% which corresponds to EUR 42.2 million of the paid-in capital of IIB.

The Czech Republic is already moving ahead with terminating its membership of both IIB and IBEC, whereas Romania announced last week that it will pull out of IIB. 

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