Emerging Europe

It’s the lot of a Euromoney journalist to speak to finance professionals across the globe. We think we cope with language barriers pretty well in the most part, but occasionally we have to admit to getting it very wrong, as the following recent phone conversation shows:

Hungarian bank OTP remains committed to central and eastern Europe despite operating in some of the region’s most challenging markets. The bank, which has a presence in nine countries in the region including Ukraine, Romania and Bulgaria, believes that growth opportunities outweigh the macroeconomic risks. "We believe that the economic convergence of the region should continue," says Laszlo Bencsik, chief financial officer. "Unit labour costs are still about 35% lower in central and eastern Europe than in western Europe. This difference will keep on fuelling investment and economic growth."

Caution and safety in numbers in 2009; Accelerating investment in Q2 continuing into 2010

Western bankers have overestimated opportunities and underestimated risks in hydrocarbon-exporting nations.

Rusal IPO finally given green light after listing delay; First biotech deal comes to market

In a sign that central and eastern Europe is increasingly on the radar screens of even the biggest private equity firms, CVC Capital Partners completed its first deal in the region in December. CVC Capital Partners, which manages companies with annual sales of more than $125 billion, is buying the central and eastern European operations of Anheuser-Busch InBev (ABI), one of the world’s largest brewers, in a deal worth an initial $2.2 billion. As part of the purchase agreement, though, CVC has the right to increase its investment by $800 million in line with returns made on the initial acquisition.

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