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EBRD publishes new strategy for Slovak Republic
The EBRD will concentrate its future activities in the Slovak Republic on sectors that can best promote growth and help the country's eventual accession into the European Union. In its new strategy, published today on www.ebrd.com, the Bank describes an increasing focus on investments in infrastructure, non-banking financial institutions, small businesses, and areas that can help strengthen the private sector and reduce regional imbalances.
Having invested around €900 million in Slovakia - including a record €344 million last year alone - and mobilised an additional €2.1 billion, the EBRD has played a pivotal role in promoting the country's reform over the past decade. The strategy, together with the continuing reform commitment from the Slovak government, should ultimately help attract additional foreign investment, which is critical to ensure future dynamic growth.
Noreen Doyle, First Vice President at the EBRD, said Slovakia has made significant steps in recent years towards a market economy. She said the country is fast approaching accession into the European Union, and that the rate of growth and reforms has been impressive. "There has been a lot of progress, but the road does not end here," said Ms Doyle. "There is still work to be done, and through its new strategy the EBRD will deepen its support for Slovakia as it approaches accession."
In particular, the EBRD will support the restructuring of the country's infrastructure, with emphasis on municipal projects, whilst in the energy sector it will aim to work with private investors to develop the country's independent power plants. Last month the Bank supported the restructuring of this sector by guaranteeing a $75 million loan from leading local bank Slovenska Sporitelna to the national power company Slovenske Elektrarne to deliver power and electricity more efficiently and meet accession terms of the EU.
Having played a significant role in the privatisation of the country's banking sector, the strategy will now direct the Bank's activities towards non-banking financial institutions, including those handling pensions, insurance, leasing and asset management companies. The EBRD will continue to work with local banks and other institutions to strengthen the country's small and medium-sized enterprises (SMEs), important for both economic stability and regional development. Last year, the Bank provided a €20 million credit line to Všeobecná úverová banka, the first to a Slovak bank under a joint EU/EBRD Finance Facility for SMEs to support the growth of this sector. The new strategy aims to expand both the volume and spectrum of financing instruments for SMEs across the country.
The EBRD will further support the restructuring and consolidation of the private sector alongside strategic investors or through equity participation, and at the same time aim to support regional development by encouraging foreign direct investment, particularly for greenfield projects in regions of higher unemployment.
The EBRD, working with the local authorities, revises its country strategies every two years with the aim of making the fullest impact on the countries as they develop towards a market economy.
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