Ranko Labovic – Director, UniCredit Bank a.d. Banjaluka, B&H

Balkans.com: Which countries in the region that you are familiar with offer the best business environment for investors?

UniCredit Bank: All countries of the Balkans have advantages and disadvantages, but certainly countries that have already joined the European Union or are at the door of the EU have great conveniences. This fact itself indicates that they have reached the environment in which European countries may freely invest with well-known rules of the game. Other countries that are not yet in the EU work towards attracting more foreign investors. Because of its location and the current political and economic / industrial situation, it is certain that Croatia has been the most attractive in the previous period. However, the investment advantages which are present in Bosnia & Herzegovina , and especially in Republica Srpska, where the Government is continuously working on making it easier for foreign investors, are such that even a greater influx of foreign investors is expected.

Balkans.com: Which industries or sectors you find most promising in terms of growth and sustainability?

UniCredit Bank: In our environment, investing in agriculture and the food industry, which includes the use of natural resources such as water, can certainly bring a stable business basis and market for produced articles. The production of the so-called clean, green energy is another industry for which certainly exists a market and potential in our country.

Balkans.com: What are the comparative advantages and disadvantages of the region that investors should consider?

UniCredit Bank: The determination of local authorities to attract foreign investors is shown in every step and it should be one of the crucial reasons why each potential investor should consider investing in B&H. If the investor is serious, each problem can be solved in order to secure the pre-conditions for investment. The readiness of the workforce to fit into new work conditions and the fast acceptance of knowledge and work processes on the other hand create the grounds for investors to be able to rely on sufficient and good quality personnel potential. On the other hand one of the shortcomings of the region is the inadequate work culture and type of employment relations from the socialist period. Also, the availability of infrastructure, particularly road and rail structures, is not at a level that is required by a modern economy.

Balkans.com: What changes or reforms would you like to see take place in 2010 in industries, sectors or institutions that are important to your business activity?

UniCredit Bank: The banking and financial services sector has been one of the strong grounds of the adequate and productive commercial environment, most of all because it belongs and is based on the large international banking system and its standards implementation. Related to this, very often domestic legislation does not regulate enough the relationships which are produced in complex business processes which occur between banks and their clients. Proprietary books, mostly in municipalities and registries are not maintained regularly in order to provide for a fast and efficient flow of needed documentation. I also expect that the commercial entities devote more attention to the aspect of financial planning for the future cash flows, because they are currently all preoccupied with basic accounting systems which essentially represent the recording of what has already been accomplished in the past.

Balkans.com: Do you foresee growth in your business sector and why?

UniCredit Bank: The banking sector was one of the generators of the recent crisis in the entire world. In our environment, however, the it has proved to be stable and as a solid base for the preservation of economic activity, such as the reduction and risks control, that have emerged out of the world wide economic crisis. Although, as the money market is already in a stage of recovery, I expect that banks will increase their appetite for risk and thus raise their credit activities, and put forward the availability of affordable means for initiating business activities.

Balkans.com: Our readers are investors already present or about to launch their business in the region. What advice do you have for them?

UniCredit Bank: Most investors know very well that banks are irreplaceable creators in the realization of investment projects. Although I would like to bring to the attention that they shouldn’t limit exclusively to the means of aid when financing projects, because banks can help in other ways of problem solution, especially in relations connected to the environment in which the investment takes place.  Today, banks are capable of high-quality reception and processing of a great number of information received from the market, and I would call on investors to rely on banks based on this. Familiarity with all aspects of the problems faced by investors, most of all the interpretation of domestic legislature and similar issues, reduces the time of implementation and reduces costs, which is crucial in every investment.