Two international banks from Soviet times to merge, Bayartsogt tells Government
Minister for Finance S.Bayartsogt yesterday reported to the Government meeting on the merger plans of the International Bank for Economic Cooperation (IBEC) and the International Investment Bank IIB).
Mongolia is a shareholder in both.
The IBEC was set up in 1963 by an agreement signed by Bulgaria, Hungary, East Germany, Mongolia, Poland, Romania, Czechoslovakia, and the Soviet Union to facilitate economic cooperation among member countries and promote their development. Cuba and Vietnam joined later. After the fall of the Soviet Union it became a Russian bank with a new charter. The IIB has been operating since 1971, with headquarters in Moscow. An agreement to establish it was signed by Bulgaria, Vietnam, Cuba, Mongolia, the Soviet Union, Romania, and Czechoslovakia.
Together, the two banks have a capital base of 1.7 billion of euro, of which Mongolia’s contribution is 11 million euro, or 0.67% of the total. It was decided to set up a working group under Mongol Bank President L.Purevdorj to coordinate with the other shareholders on formulating an acceptable merger agreement.
At present all shareholders nominate one person to the boards of the banks, irrespective of what percentage of the shares it holds. This is now likely to change.
Mongolia is a shareholder in both.
The IBEC was set up in 1963 by an agreement signed by Bulgaria, Hungary, East Germany, Mongolia, Poland, Romania, Czechoslovakia, and the Soviet Union to facilitate economic cooperation among member countries and promote their development. Cuba and Vietnam joined later. After the fall of the Soviet Union it became a Russian bank with a new charter. The IIB has been operating since 1971, with headquarters in Moscow. An agreement to establish it was signed by Bulgaria, Vietnam, Cuba, Mongolia, the Soviet Union, Romania, and Czechoslovakia.
Together, the two banks have a capital base of 1.7 billion of euro, of which Mongolia’s contribution is 11 million euro, or 0.67% of the total. It was decided to set up a working group under Mongol Bank President L.Purevdorj to coordinate with the other shareholders on formulating an acceptable merger agreement.
At present all shareholders nominate one person to the boards of the banks, irrespective of what percentage of the shares it holds. This is now likely to change.
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