The International Investment Bank is now officially operating from Budapest headquarters; thanks to this, the financial institution has become more recognised and more competitive also internationally, Finance Minister Mihály Varga stated at the business forum of the International Investment Bank and the Ministry of Finance. The Finance Minister stressed that the relocation of the headquarters to Budapest is a major acknowledgement of Hungary’s economic policy which will bring shareholders, including Hungary, positive results, and will offer players of the Hungarian economy further new opportunities.

The Minister drew attention to the fact that at present the head offices of five major international development banks are located in the territory of the European Union, but not one of them in the Eastern and Central European region. Therefore, the relocation of the IIB to Budapest will strengthen the financial role of Hungary and the region.

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The Minister also highlighted that in response to the opening of the Budapest head office, the rating agencies S&P and Fitch upgraded the investment bank’s rating by one notch, and they were able to issue bonds at record-low prices on the Budapest Stock Exchange in March this year. As a result, the financial institution’s profits have also increased, benefiting all the owners, including Hungary. He said the development path that the Member States and the Bank’s management jointly designated favours the businesses of the participating states as it facilitates their penetration of international markets as well as their participation in projects and developments.

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Speaking about the government’s investor-friendly measures, Mr Varga said since 2010 Hungary’s economic policy has promoted the implementation of projects through a rise in employment and wages, the reduction of taxes, the availability of targeted grants, and the ongoing development of vocational training and the business environment. Thanks to these measures, Hungary is becoming an increasingly popular investment destination, and according to the latest data, the country’s investment rate could exceed 27 per cent this year. The Minister recalled that the results of the Hungarian investment incentive system are also recognised on the international scene; a specialist magazine has once again selected Hungary as one of the world’s 10 best countries to invest in.