Your SlideShare is downloading. ×
0
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
2 2 Cetkovsky
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

2 2 Cetkovsky

958

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
958
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Ukrainian SMEs: choice between shadow and strength of the economy Lviv Economic Forum October 2 2009. O t b 2, 2009
  • 2. SMEs are a core for many CEE economies … but Ukraine SMEs make around 10-15 % GDP of Ukraine at the same time 10 15 they have stronger position with 30-40% GDP in CEE On average 99,7 of 100 companies operating in each of the European Union’s 27 countries are SMEs SMEs and Micros generate more than two-thirds of all jobs in European Union 27 Ukraine is moving forward to the European standards and development of SMEs is crucial for the economy If the company wants to grow from a pocket business to a BUSINESS it needs to develop and attract European investments 06/10/2009 - Page 2
  • 3. Equation for SME success Stable and efficient State support Profit making and financing transparent business 06/10/2009 - Page 3
  • 4. Downturn changed the economies and conditions for SMEs – CEE experienced the worst economic d i d h i downturn, ddespite that, region i h i will have higher growth rates then rest of the Europe – CEE governments supported SMEs, at the same time Ukrainian SME is left for its own survival – Banks changed the conditions for SMEs: limited or stopped loan activities SMEs lack turnover capital and have limited ability p y for refinancing SMEs were deeply harmed by the downturn, but those remaining downturn but, those, their business in the legal frames and proper business management are still attractive for financing and investments 06/10/2009 - Page 4
  • 5. Banks B k are hit b the crises by th i – Since September 2008 banks have lost 28% of total hryvnia deposits, and 14% of total f i currency d f l foreign deposits i – Refinancing from NBU stands at around UAH 85bn, which is 20% of total local currency banking system assets. Banks are completely reliant on NBU for l f long-term hryvnia f d t h i funds – Banks are faces with worsening loan portfolios, which results in stricter risk management Bank's net income, UAH mn 6620 7304 4144 2170 685 827 1263 2002 2003 2004 2005 2006 2007 2008 8M 2009 -20 503 Source: NBU 06/10/2009 - Page 5
  • 6. Borrower market has changed to lender market k – Reconciliation of credit conditions deformed by bullish market experienced till beginning of crisis – Banks will tighten risk policy and will not discuss conditions – Capital has become the most important but expensive product for the banks – The higher risk the higher capital consumption p Banks will be very selective in lending l di 06/10/2009 - Page 6
  • 7. SMEs are faced with the new challenges in the downturn SMEs just started building up and strengthen in 2003-2007 Crises forced SMEs to choose between b t 1. death 2. shadow economy 3. business restructuring Only restructuring and building up transparent business will enable Ukrainian SMEs to increase it’s role in the economy it s 06/10/2009 - Page 7
  • 8. SMEs have negative expectations… but positive results can b achieved if crises challenges properly met be hi d i h ll l t strong negative no influence strong positive % influence 0 influence -5 -4 -3 -2 -1 1 2 3 4 5 5 2 UA 86 20 14 23 19 10 82 12 11 28 20 11 3 HU 8 CZ 77 5 6 20 26 20 18 6 HR 74 14 6 19 18 17 15 8 SK 74 6 4 19 24 21 19 5 RS 70 12 6 21 15 16 19 8 Percentage of companies which RO 63 7 4 10 20 22 16 15 expect negative, none or positive effects of the economic crisis on their AT company in 2009 61 34 12 21 21 33 6 Source: IMAS research, July 2009 06/10/2009 - Page 8
  • 9. Ukrainian SMEs have less access to loans % 2008 2009 100 89 90 84 80 77 76 75 72 71 71 70 65 62 61 62 58 56 56 60 50 50 40 30 20 10 0 RO AT HR SK RS UA HU CZ Percentage of companies who use any kind of loan in any of the banks Source: IMAS research, July 2009 06/10/2009 - Page 9
  • 10. Ukrainian SME Uk i i SMEs use l less deposits d it % 2008 2009 100 90 84 80 80 73 70 70 63 60 56 55 53 53 50 50 47 44 40 40 34 30 30 27 20 10 0 SK CZ AT RO HU HR RS UA Percentage of companies who own any kind of deposit in any of the banks Source: IMAS research, July 2009 06/10/2009 - Page 10
  • 11. Finacial instruments used by CEE SMEs – Domestic and foreign payments are naturally the most widespread product used by SMEs (EU-15 169 bn tx. per capita); except from Ukraine (7,8 bn. tx. per capita). However, Ukraine bears the highest potential for total transactions and is growing at double-digit rates. – Usage of deposits generally increased, with the exception of Ukraine, Croatia and Hungary – Usage of loans slowed down in most of the countries, countries except from Slovakia and Czech Republic – Loans seem to be the most interesting product for the SMEs in the near future in all countries ll ti Source: IMAS research, July 2009 06/10/2009 - Page 11
  • 12. SMEs should use downturn to bring up their standards You can never enter one river twice… CONDITIONS THAT WORKED ONES… – Shadow accounting – Improper management – High risk projects … HAVE CHANGED, – Poor equity AND SME HAS TO CHANGE –Strong management (financial, information) – Ability to adopt to changes y p g – Well balanced financial structure –Adequate share of own capital – Strong risks management 06/10/2009 - Page 12
  • 13. Healthy and transparent business will get financing in the future Start with small and grow S ih ll d – Get to know the bank and open yourself to the bank – Consult and change your business – Become transparent and efficient Build partnership relations and get financing to develop 06/10/2009 - Page 13
  • 14. Even in difficult times Erste Bank proves its commitment to SMEs across CEE regions – In I 5/2009 l launched a program of EIB and E t G h d f d Erste Group to provide fi t id financing i of in total EUR 440 million from EIB to SMEs in CEE via four subsidiaries of Erste Group: Ceska sporitelna, Erste Bank Oesterreich, Erste Bank Hungary and Immorent. – In 7/2009 concluded agreement with EBRD and Erste Bank Hungary to provide lending to SME via Erste Bank Hungary in total amount of €100 million. – In I 6/2009 C k sporitelna i t d Ceska it l introduced advantageous program „TOP d d t TOP company II“ aimed for SME in total amount CZK 1 billion (ca. EUR 40 million). – Slovenska sporitelna has a co-operation with Slovak Guarantee Bank (state co operation owned) which provides bank guarantees covering up to 50% of SMEs bank exposure (max EUR 350 000 per client). – In 4/2009 BCR, the Romanian Ministry for SMEs and Commerce and Business E i B i Environment signed a collaboration protocol t support R t i d ll b ti t l to t Romania’s i ’ SMEs. 06/10/2009 - Page 14
  • 15. Pavel Cetkovsky Deputy CEO Erste Bank E-mail: Pavel.Cetkovsky@erstebank.ua Tel.: 8044 585 9275 06/10/2009 - Page 15

×