Mr. Bonferroni, UniCredit Bank is present 15 years in Serbia, could you tell us more about your business activities in Serbia and how do you see Serbia as a financial market over the years?
We are all witnesses of the development which the Serbian financial market experienced over the last 15 years. Back in 2001-2002 the average Serbian citizen had difficulties obtaining a house loan and majority of Serbians did not trust banks with their savings, following years of hyperinflation and erosion of the financial system in the 1990’s. Euro was widely used, and the credibility of dinar was yet to be established. Since then, Serbia has restructured its financial system, closed four large state-owned banks, created competitive market for financial services, improved macroeconomic and regulatory environment, introduced measures for wider dinarization, supported development of stock exchange, etc. All these influenced strengthening of the Serbian banking market which contributed that throughout the financial crisis it remained well capitalized and liquid, showing resilience, despite being hit hard.
As you mentioned, our bank is marking its 15th anniversary of successful business in Serbia. Therefore, we are very proud that, year after year, we continue to reinforce the position of strong, stable and reliable player on the local market, partner of the Serbian business and development. The development of innovative tools, improvement of relations with existing and future clients, increase in client base, introduction of alternative sales channels and new products and services, tailor-made according to the needs of our clients, represent the key of our successful performance.
What are the advantages and challenges of operating in the Serbian market?
In comparison to the region and EU countries, I would identify as main advantages highly skilled and competitively priced workforce, as well as lower operating costs. In addition, taking into consideration recent level of economic growth and improvements, we are recognizing very good investment opportunities. On the other hand slow harmonization with EU rules and complex bureaucracy are perceived as main impediments for completing the work.
What is important to point out is that in the previous period Serbia has passed a rough road from country in transition to a country with strong EU perspective. The country experienced significant economic growth despite the financial crisis. Government initiatives in the field of business financing, aimed at reinforcement of domestic companies, contributed in a large extent to boosting the production. I would like to point out that UniCredit Bank Serbia, is fully involved in all initiatives of this type. Therefore every year we participate in Government subsidized programs and provide support to development of small and medium size enterprises which are identified as key driver of Serbian economy.
In your opinion, how do you see Serbia as investment location? Do you think that Serbian companies and workers do have capacities and know how to deliver high quality products to international buyers/customers?
Serbia investment climate is continuously improving, its regulatory framework, construction permit procedures have been simplified and time frame reduced, implementation of e-government is gathering momentum, etc. Besides all these, Serbia is also an interesting market for foreign investors because of its geo-strategic position and access to EU and Eurasia markets, but also because of special agreements with CEFTA countries and Russia. Local companies and labor force have already proved to have capacities and know how to deliver high quality products: the best evidence of this is ICT industry where Serbian ICT engineers are in high demand, but also food processing and auto industry.
UniCredit has supported various projects on local development as well as industry oriented in order to improve business climate in Serbia. What do you see as a major advantage/asset/ strength of Serbia comparing to other countries in the Region?
Being a regional hub, Serbia is able to offer plenty of opportunities for investment in various industries. Maybe the most prominent is agro business which has a lot of potential, especially for developing organic food production, and where investment of EU through IPARD programme will certainly help.
Serbia has a long tradition of furniture industry. UniCredit will be one of the partners of Belgrade Fair and Development Agency of Serbia at the upcoming Belgrade Furniture Fair and Investment Conference. How do you see Serbian furniture industry today, what are the opportunities in your opinion and can Made in Serbia (design and production) label be competitive on the international market with its quality?
UniCredit Bank is proud to support, for the first time, such an important event as Belgrade Furniture Fair and Investment Conference, which every year gathers many qualified exhibitors and numerous visitors.
When talking about the competition it is certainly fierce, but Serbian companies have the ability and know-how to adapt in order to successfully place the product on the international market. Local designers are mostly innovative, but it will be recommended to exchange more experience and practice with foreign producers in order to develop more sophisticated products that will meet better the demands of international market.
When talking about the domestic market, domestic producers can certainly exploit the experience and know-how of renewed chains which are entering Serbian market. I am firstly referring to the long expected entrance of IKEA and similar chains.
What are the future plans of UniCredit in Serbia? What projects are you supporting and implementing?
After several years spent in Serbia I can confirm that we have been actively involved in working groups and initiatives initiated by government and non-government sector which are aimed at improving the investment climate and reducing the level of bureaucracy. UniCredit Bank Serbia, as member of one of the leading European banks and an undisputable leader in the CEE region, has necessary expertise and know-how from various markets which can be adopted also in Serbia.
As one of the recent initiatives, I would like to point out our cooperation with NALED on E-Government. The aim is to improve environment for developing E-Government, E-business and E-Commerce and increase Serbian competitiveness through increasing investment/business climate and provide better, less costly and less bureaucratic service to citizens and business.
What would be your advice for foreign companies that are planning to do business in Serbia or that are considering Serbia as an investment destination?
First of all, I would recommend to analyze, collect data and make high profile research of the market and industry in which company operates. Furthermore, the experience of investors who successfully already passed the same path is extremely valuable and could provide data which are not generally accessible. Also, consult with Government institutions which will be involved in the process of entering the market and will play of the main roles in market placement. The last, but not the least when planning to expand business beyond the home market, having a strong banking partner at your side makes things much easier. I would use this opportunity also to point out that UniCredit developed the International Center precisely for those who decide to expand the business. UniCredit Bank Serbia is delighted to offer support in discovering new development opportunities to both International & Multinational Corporates interested in the Serbian market, as well as Serbian companies planning to export or to establish a presence in other countries. Our team is made of specialists speaking multiple languages and having a deep knowledge of the local market.
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