- The development differs markedly in the different countries. At one end of the spectrum, we see countries such as Ukraine, where we see an ongoing political crisis with the financial crisis and sharply devalued currency. At the other end we see a country like Slovakia, which has recently gone over to the euro and has a very stable banking market.
The fact that the IMF goes in with assistance in several countries is very positive, since many Eastern European countries have a great need for continued large imports and long-term financing to expand their economies. The IMF has an important role in ensuring long-term financing at a time when the financial markets do not work.
Lars Bergström, Nordic Manager at RZB Group
- We should also keep in mind that the entire region has a total population of over 300 million and if we want a long-term growth in the Nordic countries we should be established in this market that is well located and close.
The economies in Eastern Europe are in general "Emerging" and we must be prepared for a higher risk and higher volatility compared to doing business in Western Europe.
- European Russia is closer than many might think: it takes only just over an hour to fly to Saint Petersburg and about two hours to Moscow. Nordic companies should see Russia as an important market close to home with many business opportunities.
After the financial crisis, the demand for services such as electricity, water, heating, housing and consumer goods will rise again. IT and telecom is another branch on the continued upturn. But Russia, like many of the central and eastern European countries, is a market where the business culture is different from the Nordic. The way of doing business differs between the countries in Eastern Europe, so you have to be knowledgeable about the differences.
Important for business to be successful is the personal relationships and physical presence is also important and to have access to local knowledge in both finance and business and to have a Nordic manager in the beginning with knowledge about the company and the specific country.
Local partners are important. Many times, one or more acquisitions may be the fastest way to get market shares. You should also consider that an establishment in the form of an acquisition or a subsidiary should be seen in long term perspectives, probably 5-10 years says Lars Bergström.
RZB Group's - Raiffeisen Research is our analysis department with staff in the 16 countries in CEE (Central and Eastern Europe) region where we are established. The group analyzes each market and provides weekly reports on Eastern Europe so that our customers can act proactively and in a position to fend off the future.
- Due to the financial crisis the RZB Group's focus has changed on Eastern Europe. Today, we mainly focus our attention on providing Cash Management and Export Financing. Our solutions in the Cash Management means that the bank's Nordic customers can manage their liquidity in all 16 countries, says Lars.
Within Export Financing, we have great benefit because our business customers in Eastern Europe are often companies that import from Nordic companies. Our local knowledge is very valuable for Nordic exporters. We currently have a large influx of requests for different types of export financing and risk overburden removal such as: letters of credit, exchange, guarantee products in cooperation with the Nordic export credit institutes etc.
Tony Harkén