The role of banks as a main source of financing, especially on smaller markets, will remain.

The forms of financing of the companies based in CEE will change progressively from an European to a US model, according to a prognosis of André Küüsvek, Head of Local Currency and Capital Markets Development at The European Bank for Reconstruction and Development, made during the UniCredit panel discussion at the Annual EBRD Meeting in Tbilisi, Georgia.

With Enrico Minniti, CEE Corporate Banking Director of UniCredit, as a moderator, the participants in the panel discussion André Küüsvek, Ludwik Sobolewski, CEO of the Bucharest Stock Exchange, and Paolo Bozzolo, Director of Project Financing for Austria and CEE in UniCredit, discussed “The new forms of corporate banking in CEE: beyond lending?”.

“In the USA, 80% of the necessary funds for financing companies are obtained through corporate bonds or through different forms, other than direct lending. In Europe this volume is only 25%. The corporate financing structure in Europe and Western Europe will mainly change to the US model”, André Küüsvek believes.

It is a current topic, especially because according to an EBRD evaluation, in the next five years, SMEs in Europe will need financing in the amount of EUR 2.5-3 trillion.

„Even with other forms of financing, the banks remain a natural partner of companies in the preparation of financing via, for example, a bond loan”, Ludwik Sobolewski said. According to his opinion, infrastructure and energy projects provide opportunities for a financing alternative to lending. “On the smaller European markets, (note – such as Bulgaria), banks will remain the main source of financing in comparison with debt and capital markets”, Küüsvek commented. He pointed out that on the different debt markets the price of bond loan issuing differs significantly. During the discussion it was noted that the global investors are pragmatic and at present CEE markets hold a very small share in their portfolios.

„If stock exchanges in the region consolidate, this will have a positive impact on investors, despite the fact that the CEE market will still represent a small share of global capital markets”, Ludwik Sobolewski also said. He also stated that it is easy to make regulations, but it is not that easy to attract investors, and serious steps have to be taken in this respect.

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