Galery

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The banking sector throughout Europe is experiencing funding difficulties. For many, the portfolio of loans exceeds by a wide margin their clients’ deposits. In addition, the deterioration of the quality of loan portfolios has resulted in steep increases in provisions, resulting in declines in equity.

In Greece however, the liquid assets of banks are at comfortable levels. It is more the case of a stagnation in the origination of new loans, rather than a contraction in the size of the portfolio. But this does not really reflect a deficit in available funds; more likely the credit freeze is an expression of the perceived risk in the Greek economy and of the cautiousness with which banks approach new credit requests from customers.

Under the circumstances, the BSTDB is providing financing to eligible corporate clients with good business proposals who are temporarily not receiving loans from banks. This in our opinion is more supportive of the Greek economy than trying to channel money through banks, which for a variety of reasons are reluctant to expand their loan portfolio.

Does your bank have any “frozen” projects because of the Greek economical crisis?

No. The operational portfolio of the BSTDB is of high quality. No Greek project is experiencing any difficulties, and we are closely following developments in the Greek economy, standing by to extend new loans under the right circumstances.

What would your advice be to the investors who consider starting a business in the countries where the BSTDB is active? What are the main advantages businesswise of these courtiers?

Clearly, the advice is to set aside any prejudice and confront reality as is. The glass is definitely more than half-full. Investment needs are high, financing opportunities do exist, return on capital is higher than elsewhere, and the impact on the economy is significant.

The business environment is improving rapidly, reforms are being implemented in the labour and product markets, labour is well educated and unit labour costs are low, and countries are well endowed with natural resources. Geographical proximity to wealthy markets and a high degree of integration through trade and investment flows with the EU provide additional appeal.

How do you see the future of the Black Sea Trade and the Development Bank in 10 years?

I believe that the Bank has made significant progress over the last years in its institutional and operational development and has to become a trustworthy partner for other international financial institutions, bilateral donors and private investors in the Black Sea region. By 2020, the BSTDB intends to upgrade its credit rating (A by S&P and A3 by Moody’s currently) and be recognized globally, as a prominent development finance institution for the Black Sea region providing well-focused development assistance and solutions. Thus, the BSTDB would become a preferred partner in the region for clients, multilateral donors and other development partners. 

According to our strategic plan, we shall develop the capacity to originate large-scale projects and reach our total portfolio of operations to EUR 3 -3.3 billion  by focussing on financing operations in sectors with high development impact, such as physical infrastructure and related services, social infrastructure, renewable energy, power generation, transport, municipal services and environment protection.