Czech Republic likely to leave two Soviet-era cooperation banks

PRAGUE, Jan 21 (Reuters) – The Czech Republic’s new centre-right Cabinet will likely pull the country out of two international banks set up in the Soviet era, a government spokesman said on Friday.

The central European country would end its presence in the International Investment Bank (IIB), which moved its headquarters to Budapest from Moscow in 2019, and in the Moscow-based International Bank for Economic Co-operation (IBEC).

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Both were set up to facilitate trade and investments in the communist bloc but continued to operate after its demise.

“It is very probable, the final decision will be made after the prime minister’s discussion with the foreign and finance ministers,” the spokesman for Prime Minister Petr Fiala said, confirming a report on news website website

The Czech Republic had signalled it might leave the IBEC several years ago but the process has not been completed.The previous government however favoured staying in the IIB.

The spokesman did not say what the reasons were for the potential Czech pullout from the banks.

The new Czech Cabinet has pledged to reinforce the NATO and EU country’s Western orientation.

The IIB’s move to Budapest and granting diplomatic immunity to Russian staff there raised concerns among U.S.senators website

The IIB member states are Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam, according to the bank’s website. It had assets worth 1.9 billion euros ($2.16 billion) as of October 2021.

The IBEC lists Bulgaria, Czech Republic, Mongolia, Poland, Romania, Russia, Slovakia, and kampus terbaik di lampung Vietnam as members and assets of 749 million euros as of last September.

Russia is the largest shareholder in both institutions.($1 = 0.8816 euro) (Reporting by Jan Lopatka; editing by Jonathan Oatis)

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