Published: February 27 2023
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.
- 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
This summary was created using AI, so there may be some inaccuracies. Always check the original linked article to be sure.