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The Czech Republic will withdraw from the post-Soviet international banks within six months.  The government proposal was signed by Zeman - ČT24 - Czech Television

The Czech Republic will withdraw from the post-Soviet international banks within six months. The government proposal was signed by Zeman – ČT24 – Czech Television

The Czechs will try to negotiate a financial settlement within six months in order to obtain approximately 82 million euros (two billion kroner) from both institutions, said Finance Minister Zbenik Stangora (ODS). However, he doubts the success of this in connection with the Russian aggression against Ukraine.

According to the minister, MBHS decided to leave two-thirds of the member states, in addition to Slovakia, Poland, Romania and Bulgaria, which means the de facto end of this bank. According to Stangora, the situation is more complicated in the case of MIB, because Hungary, where the bank is located, does not want to leave. Hungary is not a member of MBHS.

Both banks were created during the period of the Council for Mutual Economic Assistance (CMEA), which regulated mutual trade between the countries of the Soviet bloc and was supposed to be the opposite of the former European Economic Community, now the European Union.

Unlike the MIB, the MBHS has not undergone any transformation, it has been in stagnation for years and the former Bohuslav Sobotka government (ČSSD) wanted to withdraw from it. Stangora said the Czechs have a total of 39.2 million euros in MBHS in the form of deposit paid and retained earnings, about 960 million kroner. Czech receivables at MIB Bank amount to 43.3 million euros, or about 1.06 billion kroner.

History of MIB and MBHS

MIB was established by the governments of CMEA member states in 1970. The contributors are nine countries – Russian Federation, Czech Republic, Hungary, Bulgaria, Romania, Slovakia, Cuba, Mongolia and Vietnam. The current objective of the credit policy is to support medium-sized companies with direct loans and large companies through co-financing and focus on export financing.

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MBHS was established by the governments of the CMEA member states in 1963. The shareholders of the Bank are eight countries – the Russian Federation, the Czech Republic, Poland, Bulgaria, Romania, Slovakia, Mongolia and Vietnam. MBHS offers all existing banking services (including account management) directed at business clients, with an emphasis on business support in the Bank’s member countries.