4 December 1975, Copenhagen – The NIB agreement is signed

NIB in black and white

It is a dark winter day outside the Danish parliament building Christiansborg on Thursday 4th December 1975. Inside, however, the spirit is solemn as representatives of the five Nordic countries are gathered to sign the agreement establishing the Nordic Investment Bank. With this signing, also the bank’s name and home location are officially confirmed.

The signing took place only a few weeks after the Nordic Council voted in favour of founding the Bank. The process from vote to signing had been smooth, although intense discussions about the headquarters’ location had been ongoing throughout the autumn. This decision carried both operational and political consequences. Operationally, the location would significantly influence the pool of employees available to the bank, and politically, the host country would gain additional weight within the Nordic cooperation.

Why Helsinki?
The selection of Helsinki for the headquarters was contentious. At the time, the Finnish capital was considered peripheral, with limited international connections, making it less appealing to Nordic finance professionals. Finland’s closer relationship with the Soviet Union also influenced the perceptions.

Initially, both Norway and Sweden advocated for their own capitals. However, after extensive negotiations behind closed doors, Helsinki was ultimately chosen. The reasons for this decision have been the subject of much speculation, but it is often noted that Finland at the time was the only country without a weighty Nordic institution. And for the Swedish government, led by Prime Minister Olof Palme, there was also a strategic motive: strengthening Finland’s ties to the Nordic community and distancing it, to some extent, from Moscow.

With the location settled and the agreement signed, the practical preparations to open the new bank could at last begin.