Published: February 27 2023
Summary:
The Budapest-based International Investment Bank (IIB), which is partially owned by Russia and Hungary, is in danger of insolvency due to sanctions imposed following the Russian-Ukrainian war. This is because almost all of its liquidity reserves, which are held by Euroclear, have been frozen. A senior executive sent a letter in mid-December predicting a severe deficit for the first quarter of this year, which may not be able to be compensated for by the sale of their loan portfolio.
Key Points:
- IIB is almost 50% owned by Russia and 25.27% by the Hungarian state
- Sanctions imposed due to the Russian-Ukrainian war have frozen almost all liquidity reserves
- Senior executive predicted a severe deficit for the 1st quarter of this year
- Sale of loan portfolio may not be enough to make up for the deficit
Source article:
This summary was created using AI, so there may be some inaccuracies. Always check the original linked article to be sure.
