INTERNATIONAL BANK FOR ECONOMIC COOPERATION

(IBEC) international bank instituted by an agreement signed by Bulgaria, Hungary, East Germany, Mongolia, Poland, Romania, Czechoslovakia, and the Soviet Union in October 1963 to facilitate economic cooperation among the member countries and to promote their development. It began operations in January 1964. Cuba and Vietnam joined afterward. Its functions include making multilateral settlements in transferable rubles, advancing credit to members to finance temporary trade imbalances, accepting deposits of uncommitted funds in transferable rubles, accepting gold and convertible currencies on deposit, and conducting arbitrage and other financial operations with them. It also performs other banking operations. General policy decisions are made by the Council, which is composed of representatives from each of the 10 member nations. A 10-member Board acts as the executive body.