Interview
Michal Demák from Eximbanka told HN about operations on foreign markets.
At Eximbanka, you are the head of non-marketable risk insurance. Do you see a growing interest of Slovak exporters in the Central Asia region?
I certainly perceive. This region is becoming extremely attractive for Slovak exporters and investors. It offers a wide range of opportunities – from the dynamically developing infrastructure and energy sector, to the growing demand for modern technologies, to the favourable attitude of government institutions towards foreign investors. At the same time, Central Asia is profiling itself as a stabilising region with abundant natural resources and an ambition to modernise its economy. We are currently seeing increased demand for support for transactions to Uzbekistan, Kazakhstan, Tajikistan and Turkmenistan. Proof of the attractiveness of this environment is the recently concluded agreement on the provision of a preferential buyer credit with Eximbanka insurance to Uzbekistan.
What challenges do exporters face here?
Exporters face a number of challenges, including a different business environment, administrative complexity and limited availability of up-to-date market information. Cultural and communication differences also play an important role, which can affect the pace of negotiations or the way deals are concluded. Another challenge is the need to adapt to local legislative and customs requirements, as well as the different levels of infrastructure in some parts of the region. These factors require thorough preparation, patience and reliable local partners.
You recently insured a buyer loan for a project of a Slovak company in Uzbekistan. What does this mean for our exports?
This project represents the imaginary beginning of a new trade cooperation between the Slovak Republic and Uzbekistan. This is an important step which confirms that Slovak companies have something to offer in the region. Moreover, it is thanks to this project that Slovak exporters are beginning to be perceived by other countries in the region as reliable and technologically advanced partners.
“The project in Uzbekistan is an example of an effective link between the business and development aspects of our activities. The Slovak exporter will gain new business opportunities and the partner country will gain modern technologies,” said Milan Horváth, Eximbanka’s Deputy Director General for Insurance.
Are you also interested in Kazakhstan or other countries in the region?
Yes, we do. We perceive the potential of expanding the activities of Slovak exporters and investors to other countries in the region. Not only Kazakhstan is attractive, but also Turkmenistan and Tajikistan. At this moment we are also processing specific business opportunities for Slovak exporters. Interestingly, the interest is mutual – even the Central Asian countries themselves are actively looking for Slovak companies that could contribute to their economic development through modern technologies and know-how.
Which sectors have the greatest potential for Slovak exporters in Central Asia?
The sectors with the greatest potential are undoubtedly transport, infrastructure, energy and environmental technologies. There is also growing interest in the areas of water, agriculture, raw materials processing, IT and digitalisation. Slovak companies have a lot to offer in these areas – from innovative solutions to years of technical experience.
What specific tools do you offer exporters here?
Speaking for the insurance division, we offer insurance for short, medium and long-term receivables against commercial and political risks. In addition, Eximbanka specialises in more complex forms of support – namely, insurance of customer credit or insurance of the investment itself or credit for an investment abroad. All these products are designed to minimize the risks of Slovak exporters and enable them to operate even in less stable markets.
Is Eximbanka planning to strengthen its activities in Central Asia?
It certainly does. We see the region as strategic in the long term, not only in terms of exports, but also in terms of investment cooperation. Our ambition is to support Slovak companies in their expansion into these prospective countries and to create space for long-term partnerships. Mutual cooperation can be a driving force for the development of both regions.
What would you say to Slovak companies that are still hesitant to enter markets outside the European Union?
We recommend that businesses thoroughly study the specifics of the target market, understand local cultural and business practices, and devote sufficient time to preparation and relationship building. Don’t be afraid to enter markets outside the EU – the Central Asia region offers a wide range of opportunities and Eximbank stands behind you as a strong and reliable partner ready to help you finance and insure your business as well as your investments.
Author Pavel Novotný
The series I Want to be an Exporter is prepared by HN in cooperation with Eximbanka.