You took up the post of CEO of Eximbank in December last year. With what goals did you take it over?
Right at the beginning of this interview, I have to say that I had already been working at Eximbank for a year before I took up my current position, as Deputy General Manager for Finance. So I knew the situation in the bank very well and I knew where we wanted to go. So the short-term targets we had set for 2023 I basically just took over, as I was aligned with them. We continued on as the strategy was set.
What shape was Eximbank in when you took over?
The whole of 2023 confirmed that Eximbanka was in good shape. We were able to stop the downward trend in equity exposure, start new business and win twice as many new clients as in 2022. The development we expected was confirmed and we achieved one of the highest equity exposures with a year-on-year increase of 16 per cent. At the same time, we recorded the highest operating income in Eximbank’s history.
Nevertheless, what priorities have you set for this year?
First and foremost, it was to focus on the business and to stabilise our client base. After years of covide and the associated downturn, this is what we have been focusing on. Finally, already at the beginning of 2023, we concentrated on strengthening our trade strategy, because Eximbanka has long been seen as a tool to promote exports, especially for large companies. Historically, this made sense because the industry structure was strong in engineering, water and energy. Slovakia was able to export technological units and had a very good reputation, especially in the eastern regions of the world, where it also benefited from the “Made in Czechoslovakia” brand.
Has this changed over time?
Yes, it must have. We had, say, 60 or 70 major clients. However, we realised that we also needed to support small and medium-sized enterprises, which form the cornerstone of the country’s economy. Of course, this also entails a different approach towards clients. Well, that is what I came into office with and I have adopted that approach.
You mentioned that you had to change your approach to clients. How did that manifest itself?
We started interacting more with small and medium-sized businesses. We also talked to them about what exporting actually is. We showed them how they can approach it, what they have to do to do it, what their obligations are. We more or less came up with the concept of educational business workshops or forums, which we call the Export Club. We brought it to the market to showcase just exporting. Because we think that the export opportunities for small and medium-sized companies are very big, it’s just that they are not communicated very much.
Was it a complete novelty?
No, we have had this concept in the past and it has been very successful in terms of export promotion. Then there was a pause for a while. However, a new government came in with its programme statement. It also said that exports would have to be strengthened. So we were actually, as it were, ahead of our time when we started to talk more intensively about exports.
Why has there actually been a change of focus towards small and medium-sized enterprises?
After the decline in Slovakia’s exports came the large investments that kick-started the era of the automotive manufacturing industry. However, foreign large corporate companies do not need the services of Eximbank. World exports are increasingly being transformed into services and value-added products. We therefore recognise the need to support smaller companies more, but with more sophisticated products. However, I must remind you that Eximbank’s role is primarily complementary. That is to say, at the moment we are already a kind of complement to the commercial banking sector. That is also why we have strengthened our insurance division.
What was the primary objective of this move?
Primarily to accelerate insurance products that are compatible with the financing of the commercial sector, or to co-finance commercial bank projects. This is, after all, how export credit agencies in foreign countries normally operate and are successful with it. There is no reason why it should not work in our country as well, i.e. in a country that is highly export-oriented. With a nearly 90 per cent share of exports in GDP and a strong and healthy banking sector. An honest approach to winning new business with sound cost management is proving to be the right way to grow Eximbank.
Can you give specific examples of the priorities you see in the context of Eximbank’s growth?
As I mentioned earlier, we are continuing the trend of the concept set out in 2023, namely the strategy to grow the client base. And not only in the banking division, but also in the insurance division, where we see really great potential. On the basis of our internal analyses, we have evaluated a set of focal priorities that are necessary to meet our objectives. One of them is a stronger connotation and recognition of Eximbank’s product portfolio. In principle, we want it to be known that Eximbanka is able to support the export activities of Slovak companies for the export of goods, services and capital. And this also for small and medium-sized enterprises. It is also important to emphasise that Eximbanka provides a complementary service to commercial banks as an insurer protecting political and commercial risks of foreign markets, or as a financing and reinsurance partner.
Will you continue to inform companies about their export opportunities?
Yes, also for the reasons mentioned above, we will continue the successfully started series of practical educational working events. Together with economic diplomats and other economic diplomacy partners, we present companies with step-by-step practical workings of exporting to selected territories. We have introduced Georgia and the Western Balkans region. Now we are preparing an Export Club focused on the Central Asian region. And the next one will be oriented to Southeast Asia.
What changes would you like to see from the government in this regard?
That is a very good question. We are communicating with our promoter, the Ministry of Finance, about the possibility of amending the Eximbank Act. The status of exports, the involvement of Slovak companies in the international chain, the promotion of exports of the Slovak Republic, innovative economy, climate protection and country security are topics for which the law from the 1990s is simply insufficient. We see this in neighbouring countries where export credit agencies are backed by amended laws, are more capital-intensive and have a much broader mandate.
Are you in regular contact and cooperation with government institutions?
Yes, of course. I must remind you that one of the most important prerequisites for success is a synergistic approach to foreign trade promotion and economic diplomacy. That is why we cooperate very actively with our partners – the Ministry of Foreign and European Affairs of the Slovak Republic, the Ministry of Economy of the Slovak Republic and the Slovak Agency for Investment and Trade Development, known as SARIO. Thus, as it was also stated in the government’s programme statement, of which Eximbanka was a part, in efforts to strengthen Slovak exports and increase the competitiveness of companies in the international environment.
When you mention cooperation at the institutional level, can you say something more about the opportunities for Slovak exporters in international projects and cooperation?
Beyond its core mandate, Eximbanka is one of the actors on the development cooperation agenda. In 2024, we have the ambition to finalise support for several trade transactions of Slovak exporters to developing countries. I believe that we will be able to implement the open projects and thus contribute to the fulfilment of Slovakia’s development cooperation objectives.
So far, we have discussed cooperation and support from the state. Do you also have any form of support from the European Union?
Yes. Eximbanka is the only export credit agency in the region that has been authorised by the European Commission for the use of European Union funds – Pillar Assessment. This authorization entitles us, among other things, to apply for the use of EU guarantee and grant funds intended to support development projects around the world. I believe that with this instrument we will be able to help Slovak companies to participate in the implementation of these projects.
Has this changed over time?
Yes, it must have. We have had, say, 60 or 70 larger clients. However, we have realised that we also need to support small and medium-sized enterprises, which form the cornerstone of the country’s economy. Of course, this also entails a different approach towards clients. Well, that is what I came into office with and I have adopted that approach.
You mentioned that you had to change your approach to clients. How did that manifest itself?
We started interacting more with small and medium-sized businesses. We also talked to them about what exporting actually is. We showed them how they can approach it, what they have to do to do it, what their obligations are. We more or less came up with the concept of educational business workshops or forums, which we call the Export Club. We brought it to the market to showcase just exporting. Because we think that the export opportunities for small and medium-sized companies are very big, it’s just that they are not communicated very much.
Was it a complete novelty?
No, we have had this concept in the past and it has been very successful in terms of export promotion. Then there was a pause for a while. However, a new government came in with its programme statement. It also said that exports would have to be strengthened. So we were actually, as it were, ahead of our time when we started to talk more intensively about exports.
Why has there actually been a change of focus towards small and medium-sized enterprises?
After the decline in Slovakia’s exports came the large investments that kick-started the era of the automotive manufacturing industry. However, foreign large corporate companies do not need the services of Eximbank. World exports are increasingly being transformed into services and value-added products. We therefore recognise the need to support smaller companies more, but with more sophisticated products. However, I must remind you that Eximbank’s role is primarily complementary. That is to say, at the moment we are already a kind of complement to the commercial banking sector. That is also why we have strengthened our insurance division.
What was the primary objective of this move?
Primarily to accelerate insurance products that are compatible with the financing of the commercial sector, or to co-finance commercial bank projects. This is, after all, how export credit agencies in foreign countries normally operate and are successful with it. There is no reason why it should not work in our country as well, i.e. in a country that is highly export-oriented. With a nearly 90 per cent share of exports in GDP and a strong and healthy banking sector. An honest approach to winning new business with sound cost management is proving to be the right way to grow Eximbank.
Can you give specific examples of the priorities you see in the context of Eximbank’s growth?
As I mentioned earlier, we are continuing the trend of the concept set out in 2023, namely the strategy to grow the client base. And not only in the banking division, but also in the insurance division, where we see really great potential. On the basis of our internal analyses, we have evaluated a set of focal priorities that are necessary to meet our objectives. One of them is a stronger connotation and recognition of Eximbank’s product portfolio. In principle, we want it to be known that Eximbanka is able to support the export activities of Slovak companies for the export of goods, services and capital. And this also for small and medium-sized enterprises. It is also important to emphasise that Eximbanka provides a complementary service to commercial banks as an insurer protecting political and commercial risks of foreign markets, or as a financing and reinsurance partner.
Will you continue to inform companies about their export opportunities?
Yes, also for the reasons mentioned above, we will continue the successfully started series of practical educational working events. Together with economic diplomats and other economic diplomacy partners, we present companies with step-by-step practical workings of exporting to selected territories. We have introduced Georgia and the Western Balkans region. Now we are preparing an Export Club focused on the Central Asian region. And the next one will be oriented to Southeast Asia.
What changes would you like to see from the government in this regard?
That is a very good question. We are communicating with our promoter, the Ministry of Finance, about the possibility of amending the Eximbank Act. The status of exports, the involvement of Slovak companies in the international chain, the promotion of exports of the Slovak Republic, innovative economy, climate protection and country security are topics for which the law from the 1990s is simply insufficient. We see this in neighbouring countries where export credit agencies are backed by amended laws, are more capital-intensive and have a much broader mandate.
Are you in regular contact and cooperation with government institutions?
Yes, of course. I must remind you that one of the most important prerequisites for success is a synergistic approach to foreign trade promotion and economic diplomacy. That is why we cooperate very actively with our partners – the Ministry of Foreign and European Affairs of the Slovak Republic, the Ministry of Economy of the Slovak Republic and the Slovak Agency for Investment and Trade Development, known as SARIO. Thus, as it was also stated in the government’s programme statement, of which Eximbanka was a part, in efforts to strengthen Slovak exports and increase the competitiveness of companies in the international environment.
When you mention cooperation at the institutional level, can you say something more about the opportunities for Slovak exporters in international projects and cooperation?
Beyond its core mandate, Eximbanka is one of the actors on the development cooperation agenda. In 2024, we have the ambition to finalise support for several trade transactions of Slovak exporters to developing countries. I believe that we will be able to implement the open projects and thus contribute to the fulfilment of Slovakia’s development cooperation objectives.
So far, we have discussed cooperation and support from the state. Do you also have any form of support from the European Union?
Yes. Eximbanka is the only export credit agency in the region that has been authorised by the European Commission for the use of European Union funds – Pillar Assessment. This authorization entitles us, among other things, to apply for the use of EU guarantee and grant funds intended to support development projects around the world. I believe that with this instrument we will be able to help Slovak companies to participate in the implementation of these projects.
More from the interview with the CEO of Eximbanka Ing. Rastislav Podhorc, MBA can be read HERE
Photo source: Peter Majer