The Romanian Government is discussing on May 25 the ordinance on the steps to be taken for pulling out of the International Investment Bank (IIB), the financial institution of the former Communist countries where Romania holds a 6.4% stake, Economica.net reported.

Coming after Russia's invasion of Ukraine, the decision puts at risk the RON 1.4 bln (EUR 270 mln) that the local investors, including several major pension funds, placed in the bonds issued by IIB.

Faced with similar decisions taken by more countries, also shareholders of IIB, the rating agencies took cautious steps. On May 21, Fitch withdrew its rating of the bank. At the end of March, Fitch changed the credit rating for the bank's long-term debt from BBB to BB- with a negative outlook, while the short-term debt rating was changed from F2.

The IIB is controlled by Russia, which holds 47% of IIB's shares. 

andrei@romania-insider.com

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