ONLY A HANDFUL OF small and medium sized foreign companies take bank loans when setting up business in Ukraine. They make sure they have enough financing from the company back home instead or they look for funding elsewhere, for example through venture capital.
– Obviously, some companies take bank loans here, but interest rates are as high as 18 percent, says Clara Bodin.
WHEN SHE STARTED her recruitment company Clarus Eastern Europe three years ago in Ukraine, the parent company in Western Europe lent money to the subsidiary. Customer service from Ukrainian banks leaves a lot to ask. In particular, it is complicated for small foreign subsidiaries, says Clara Bodin. Thanks to their names, the large international companies have less difficulty since they are immediately directed to the international department with good service and English speaking personnel.
WHEN LOOKING BACK in history, the government-owned Ukrainian bank did not face competition from other banks until the mid-90s.
– Many rich Ukrainians started their own banks to lend money to themselves, says Clara Bodin.
Not until the turn of the millennium, the first foreign banks arrived in the Ukraine and 2-3 years ago they started buying Ukrainian banks and offering bank services to private individuals.
– The Ukrainian banking system has to become more customer oriented and easier. This is where foreign banks play a big role. Companies offering related services like insurance, debt collection, Internet shopping, blocking service etc can also find its niche and gain a substantial market share. If you get your business to operate like in Western Europe, all foreign companies will line up to become customers.
Emelie Ring