Euromoney, is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
BANKING

Banking: Stepic accentuates positives

Herbert Stepic, chief executive of Raiffeisen International, the second-biggest lender in central and eastern Europe, remains confident that despite the short-term effects of the global credit crunch and the associated economic slowdown, central and eastern Europe will continue to offer profitable opportunities for those institutions that display a long-term commitment to the region.

Herbert Stepic, Raiffeisen International

"I personally believe that central and eastern Europe will stay the most attractive growth market in the whole of Europe and that in a couple of years’ time, we will look back at this crisis as a spot in history"

Herbert Stepic, Raiffeisen International

Stepic says: "I personally believe that central and eastern Europe will stay the most attractive growth market in the whole of Europe and that in a couple of years’ time, we will look back at this crisis as a spot in history." While acknowledging that economic growth levels in the region will be lower than in the pre-credit crunch era – no bad thing, he argues, given the dangers of economic overheating – he still believes that so-called New Europe will continue to outperform the soi-disant Old Europe by some margin. "Central and eastern Europe still offers a number of key advantages versus the EU15 economies," says Stepic, citing such features as low labour costs, high educational standards and rising productivity gains. What’s more, he adds, the investment case for central and eastern European has been further bolstered by attractive, low tax regimes for both corporates and private individuals.