September - Raiffeisen Bank International AG

Transcription

September 2015
GSS Press
Group Securities Services Monthly
Slovenia
In this issue
AT A GLANCE
Slovenia:
Back on track
TALKING POINT
Davor Pavic´
Deputy President of the Management Board & COO, KDD Andrej Šketa
CEO of the Ljubljana
Stock Exchange
2
3
5
RESEARCH REPORT
Recovery continues, peak might be
reached in 2015 7
MARKET ROUNDUP
8
CITY BREAK
Maribor12
ˇˇ
HAVE YOU MET
Primož Kovacic 13
CONTACT US14
IMPRINT & DISCLAIMER 15
ATTILA‘S PHOTO BLOG
EVENTS
This document is intended for
institutional investors only.
GSS Press | September 2015
16
Recession cancelled
Slovenia, a country of 2 million people,
featuring ski slopes and Mediterranean
beaches within immediate proximity, has
taken an astonishing direction in the recent
years. When it entered the eurozone in
2004, it was something like a European
model country with a sound macroeconomic performance. I remember the impeccable motorways that soon had replaced
the rough Autoput from the old days.
New impetus for the capital market will
come from the take-over of the Ljubljana
Stock Exchange by the Zagreb Stock Exchange. GSS Press asked Mr. Andrej Šketa,
CEO of the Ljubljana Stock Exchange, and
´ Deputy President of the
Mr. Davor Pavic,
Management Board of KDD, about the implications of the change in ownership.
The euro crisis hit Slovenia hard and it was
not long ago that it looked as if Slovenia
had to approach the Euro rescue fund. But
instead of searching a bail-out, the government decided to impose serious economic
reforms and effectively managed to turn the
corner.
Attila Szalay-Berzeviczy
Executive Director
Head of Group Securities Services
Kind regards,
1
AT A GLANCE
SLOVENIA
Back on track
Although in 2009 many people in Slovenia thought that the financial crisis would
not affect the country to a greater extent,
it turned out to be just the opposite.
Slovenia experienced a double dip recession and needed more than five years
to return to growth. There was also something good in this. Namely, that most
of the people experienced disillusionment
and realized that not all the things were
as good as they seemed to be. It quickly
became clear that above average economic growth recorded in the years before
the financial crisis was merely a consequence of excessive credit expansion,
which ended in a painful deleveraging
that still lasts. The need for serious structural reforms came to the surface, including
changes in the pension system, the labor
market, public healthcare and others.
When Slovenia found itself on the verge
of liquidity in 2013, seemingly in demand for foreign help, political will for
much needed reforms was finally there.
Two years later, economic recovery has
set in. GDP has grown by 3% in 2014
and by 2.7% in the first half of 2015. At
the same time, a majority of other macroeconomic indicators have improved as
well. An opinion that the ongoing economic recovery will be sustainable is also
reflected in the country ratings that are
improving again.
Bad bank
An important step towards improvement
has been the establishment of the Bank
Asset Management Company (BAMC), a
bad bank, who took over bad loans from
state-owned banks. This was a big relief
for the Slovenian banking system, since
it also helped to restore the much nee-
ded confidence. Banks are posting profits
again and we see a constant growth of
deposits despite the fact that the respective interest rates have significantly decreased in the last two years.
The installation of a bad bank had yet another effect. It became the largest hotelier in
Slovenia, controlling app. 30% of all hotel
capacities in the country. Moreover, it is
about to become the biggest seller of real estate in Slovenia. This way, BAMC will have
a major impact on future developments in
certain areas of the Slovenian economy.
Sales of companies as a result of their
over-indebtedness and privatization due
to consolidation of public finances are
ongoing. Unfortunately, the privatization efforts slowed down somewhat after
some sale processes were stopped due to
the level of incoming bids or other issues.
Still, the government recently approved
a strategy for managing the state assets,
including an associated classification of
companies. This shows the intent to either
improve the management of the assets
considered important for the country or
to dispose those which are not.
The market is taking a new shape
The capital market and its participants
have undergone big changes lately.
Slovenia’s central securities depository is
preparing the grounds for T2S implementation and the Ljubljana Stock Exchange
is awaiting a new owner. For the successful implementation of European legislation and projects, various domestic laws
are being adapted. This year, amendments to the rules on dematerialized
securities will come into force, followed
by amendments to the Law on Financial
Instruments Market.
The financial industry as a whole is in
a consolidating mode. As some banks
were sent to liquidation and others were
nationalized, we can expect mergers
and acquisitions activities in this sector in
the near future.
To sum it up, things are not perfect but
if we continue to walk this path, we
can look into the future with optimism
and strong belief that brighter days are
ahead of us.
Primož Kovacic
Head of GSS Slovenia
2
TALKING POINT
Big steps in a small market
The Slovenian Central Securities Clearing Corporation (KDD) is celebrating the 20th anniversary of its operations.
GSS Press asked its Deputy President of the Management Board & COO, Mr. Davor Pavic,
´ what he expects for the future.
Mr. Pavic,
´ congatulations on KDD's anniversary! What is on your schedule for the
next few years?
Over 20 years of successful operations we
have always had in mind the immediate
needs of all relevant stakeholders.
In the initial years, the focus was put on
the local securities market business in order
to support the privatization process, on developing local stock exchange operations
and on establishing the ideal CSD business
know-how for the local economy and its
investors.
These foundations served as a solid background for further KDD growth, always
taking global CSD industry standards into
consideration. In the last decade, however, KDD faced a significant drop in settlement volumes, in services performed, in
the number of securities accounts opened
in the central registry as well as in member
count. Simultaneously, KDD evidenced increased interest in the Slovenian securities
market from foreign investors and (I)CSD
infrastructure, an increase in OTC business, changes on exchange trading level
and, finally, intense pressure to adapt local
CSD market practice to international industry standards, cross-border accessibility rules and the common European regulatory
framework.
The future will surely show further enhancement of KDD operations, greatly fostered by the pan-European – still not entirely
realized – project of establishing a fully
integrated, borderless financial services
and securities market. Such changes come
hand in hand with increased regulatory
compliance requirements.
Which new products or services are you
currently developing?
KDD is currently fully occupied with adjusting
its operations to the T2S operational framework. This project encompasses the entire
range of functionalities agreed among all
T2S CSDs, namely unified instructing practices, settlement optimization procedures,
comprehensive ISO standardization compliance, the introduction of ISO15022 and
ISO20022 messaging standards, corporate
actions standardization with an extension
to transaction management services – including the Christmas-tree (cascade) model
for corporate actions information solutions
– and entitlement payments, T2S shaped
collateralisation techniques, etc.
This will fully align KDD operations with
global market practices and standards and
enable KDD to offer its customers up-to-date
services comparable with other CSD competitors.
Further enhancements and even new functionalities are mainly customer-demand
driven or based on national or European
regulatory requirements.
You are facing increased regulation by the
European Commission and the European
regulators. How is KDD, as one of the
smaller central registers, facing the flood
of changes?
We understand the ambitions of the European administration as an inevitable step
to achieve the ultimate goal of enhancing
efficiency of the European securities markets and, hence, take all potential advantages of the single European currency.
Such initiatives may result in an enhanced
competition on the post-trading level, lower costs of post-trading services, efficient
cross-border capital allocation, optimized
inter-market liquidity allocation, etc.
On the other hand, the advantages of such
initiatives are expected to be visible primarily
3
TALKING POINT
cessing corporate actions with KDD.
Indeed, CTM-implementation for corporate
action related information and cash entitlements distribution represents a major shift
in the local market practice. KDD's T2S integration model foresees all functionalities
to fully adopt the CTM logic. Those changes will come into force when KDD connects to T2S. In the meantime, the necessary regulatory changes have been agreed
upon with all competent stakeholders and
are ready to be passed by the legislator.
The Ljubljana Stock Exchange will soon
have a new owner. Do you expect any
major changes regarding your operations?
As with past ownership changes in the
Ljubljana Stock Exchange, KDD is looking
forward to continuing a fruitful cooperation
in order to offer up-to-date and reliable services to all parties in the securities market.
in bigger systems, which may use the T2S
platform as a means of enhancing and
even (partly) outsourcing their operations,
and with big custodian banks, which may
benefit from single entry points with easier
access to any given European market. Access to multiple markets is even simplified
through the (promised) harmonization of
CSD services – including corporate actions.
Increased regulation and the Eurosystem’s
harmonization initiatives inevitably put
comparatively bigger pressure (and financial burden) on a smaller CSD with lower
operation volumes and less human resources. KDD, however, believes that tightened
regulatory requirements and the introduction of a pan-European securities settlement platform still leaves enough space
for further business development and even
better support for its customers.
KDD is scheduled to migrate to T2S in the
fourth wave, meaning in the first quarter
of 2017. Can you update us on how the
preparations are progressing?
From KDD’s perspective, all planning,
development, and migration activities
are conducted with utmost care. Hence,
we work according to a detailed internal
schedule, in harmony with T2S-defined
deadlines. Client readiness activities comprise regular presentations, organized by
KDD, within the National User Group or
the Market Implementation Group. The last
comprehensive presentation for our members (including all T2S functionalities and
corresponding KDD-related procedures) is
planned for end 2015/beginning 2016.
Testing activities for members will be arranged in two steps: the initial test in February
2016 and the final test in October 2016.
The migration workshop will take place
end 2016.
One of the major changes concerns the implementation of the Christmas Tree Model
to centralize the information flow on pro-
KDD registered the first foreign member
recently.
Direct membership in KDD by foreign
banks/CSDs seems to be a logical consequence of the above-mentioned initiatives of the European Commission and the
European Central Bank which aim to shift
fragmented European post-trading infrastructure to a new, borderless level.
As local specificities are disappearing due
to mandatory compliance with global industry standards and business practice,
foreign players are shortening the chain
of intermediaries to reach local markets.
However, Europe still lacks harmonization
in several areas and local expertise still offers added value to foreign intermediaries
and investors.
From KDD's point of view, the entrance of
the first foreign direct member is an opportunity to move up the value chain in the
services provided. At the same time it is a
confirmation of our strategic goals, i.e. easening access to the domestic infrastructure
and producing growth in terms of value
and volume of settled transactions.
4
TALKING POINT
More visible than ever
Andrej Šketa, CEO of the Ljubljana Stock Exchange, set forth the future aspects of the new ownership for the readers of GSS Press
Mr. Šketa, how would you assess the
current situation on the Slovenian capital
market and the role of the Ljubljana Stock
Exchange?
In the first half of 2015 the market volume was below the levels of 2014, which
is mainly the consequence of alterations
in the privatization process. The SBITOP
index is slightly negative, mainly due to
a substantial 30% drop in the share price
of Telekom Slovenije, which is the result
of the government’s unsuccessful attempt
to sell the company. On the other hand,
the economic growth in Slovenia is above
EU average, Prime Market companies are
performing well and most of them boast
a favorable dividend yield. This led to a
more than 10% surge in Krka, Gorenje and
Luka Koper share prices, also insurance
company Triglav has been doing well. This
implies a solid potential for the future.
The Slovenian market is a frontier market.
It is relatively small and features specifics
similar to other comparable markets. Those
who understand these markets and operate
on them are adequately rewarded for their
focus and patience. International investors
account for almost half of the Prime Market
turnover on the Ljubljana Stock Exchange.
In 2015 we have already seen some new
bonds issuers, taking advantage of the
excess liquidity. The interest rates offered
exceed those on bank deposits.
Last year the start of the privatization
had a great effect on liquidity and share
prices. On the other hand, some of the
sold-off companies were delisted in the
meantime. What are the implications for
the market place?
The majority of the listings on the Ljubljana
Stock Exchange are the result of privatizati-
on and it was thus expected that some companies would be taken over and delisted
from the market. At the moment, the privatization process is at a standstill subsequent
to a change in the government’s asset management strategy. Investors are waiting
for more details and concrete steps.
In the long term, however, the strategy
might bring additional opportunities for institutional and portfolio investors as it also
foresees the sale of state assets through the
market and major IPOs. The privatization
process is supposed to continue over the
next few years and so we may expect interesting developments on the market soon.
The Council for Financial Stability (composed of members from the Bank of
Slovenia, the Securities Market Agency,
the Insurance Supervision Agency and the
Ministry of Finance) presented proposals
for capital market development. What
would be their impact on LJSE?
The proposal is to pragmatically list companies which are majority or partly stateowned and to offer smaller stakes in these
companies for sale in several steps and
not merely to one strategic investor. Subsequently, these companies would have
the opportunity for further privatization
and possibilities for additional financing
through the market.
For too long has Slovenia adhered to bank
financing for companies, which obviously
has its limitations when it comes to assuming
risks and channelling household savings.
These limitations can be overcome through
the capital market. Privatizations through the
capital market, enabling institutional investors to enter the market and directing part of
the household savings to the capital market
are the incentives that will drive the Ljubljana
Stock Exchange in the future years.
5
TALKING POINT
What should be done to improve the
market performance?
These proposals reflect professional and,
even more importantly, political awareness
that, in order to achieve better economic development, the influence of domestic politics
needs to be reduced while adequate and
balanced financing of companies needs to
be enabled. Moreover, a part of Slovenia’s
structural issues, especially those related to
the pension system, can be resolved by these changes. In this respect, it is important
to insure more inflows into the second and
third pension pillars by enabling them to invest in shares. In a well-functioning market,
international institutional investors expect
that local investors, considered to be most
familiar with the local market, are active on
the market as well.
Are there any news on the sale of the
Ljubljana Stock Exchange? When can we
expect the closing?
The sale and purchase agreement for the
Ljubljana Stock Exchange has been signed
in July, the closure of the transaction is expected by the end of the year. All other details regarding the transaction can only be
communicated by the owners.
From the Ljubljana Stock Exchange’s point
of view I can only add that we see the
change in ownership as a positive move. It
is a completely logical development given
the size of the Ljubljana Stock Exchange,
which will in the future require the deployment of specific market development measures, different from the activities conducted on other larger CEESEG Exchanges.
LJSE is using Xetra, the trading platform
deployed by the exchanges that form the
CEESEG Group. Does this mean that you
will, in one way or the other, continue to
cooperate with the CEESEG Group?
The operation of exchanges in all EU member states is quite comparable. Regulation
and its level of detail are similar across the
entire EU.
The CEESEG Group is prepared to continue to offer the Ljubljana Stock Exchange
the same portfolio of services and technology that has enabled us to successfully and
efficiently operate the market so far. I believe LJSE will continue to use the existing
trading platform and further disseminate
data through the CEESEG.
Another precondition for market success is
to supply a consistent range of products,
well accepted by local and regional investors. The markets of the Ljubljana and the
Zagreb Stock Exchanges have a lot in common. Together with other similar markets in
the region, they are often regarded as one
investment area by international investors.
Croatian pension funds are very important
investors in this whole region. We also
hope for more active Slovenian institutional
investors in the coming years.
Together with the Zagreb Stock Exchange,
we will be more visible in our region. We
will be able to improve the value proposition for our investors and we expect to
become more important than within the
CEESEG Group in the past.
6
Slovenia
Slovenia
SLOVENIA
RESEARCH REPORT
Recovery continues, peak might be reached in 2015
provided by Raiffeisen Bank International Vienna
GDP growth at 2.4% seems feasible in 2015, following a strong 2.6% growth in 2014
Public debt may stabilise, which is reected in positive assessments by rating agencies

growth
at 2.4% seems
in anchor
2015, following
a strong
2.6%
2014
GDP
Progress
in privatisation
willfeasible
be key to
investor con
dence
andgrowth
positiveinsentiment

Public
debt
may
stabilise,
which
is
re
ected
in
positive
assessments
by
rating
agencies
Restructuring in banking sector offers economic upside
Progress in privatisation will be key to anchor investor condence and positive sentiment
Restructuring in banking sector offers economic upside
Real GDP (% yoy)
3
10
2
8
3
1
10
6
2
0
8
4
Real GDP (% yoy)
1
-1
6
2
Forecast
4
0
2
-2
Forecast
2016f 2016f
2014 2014
2013 2013
-3
2012 2012
-2
2011 2011
2010 2010
-1
-3
2015e 2015e
0
-2
0
-2
Real GDP (% yoy)
Industrial output (% yoy, r.h.s.)
Source: Thomson Reuters, RBI/Raiffeisen RESEARCH
Real GDP (% yoy)
Industrial output (% yoy, r.h.s.)
Budget balance and public debt
-15
100
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0
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80
100
60
80
40
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20
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0
20
Budget balance and public
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2016f 2016f
2014 2014
2015e 2015e
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2012 2012
2011 2011
0
Forecast
2010 2010
Most of the recent economic data out of Slovenia were in line with positive assumptions or even slightly overshooting positive projections. For instance the Q1 GDP
Most
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economic
of Slovenia
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cameof
inthe
at 2.9%
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which
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tions
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the a
Q1
GDP
in 2015.
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a GDP
growth ofpositive
2.4% yoy
seems feasible,
following
decent
came in at at
2.9%
yoy
(0.8%
qoq) which lays a strong foundation for solid growth
expansion
2.6%
yoy
in 2014.
in
2015. Forthere
2015
GDP growth
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feasible,
following
a decent
Moreover,
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in major
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parameters
expansion
at
2.6%
yoy
in
2014.
of the domestic banking sector. Thus, although with caution, one can state that the
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there aresector
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in major
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Slovenian
has potential
for an upside
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2015 and
of the domestic
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although
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growth
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banking
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potential
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rent
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ation of growth dynamics into 2016. Budget consolidation remains on track and
the
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ation
of growth
dynamics
into 2016. Budget consolidation remains on track and
of
GDP)
in the years
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hence
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more
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sentiment for Slovenia. In June S&P raised the outlook on Slovenia’s A- sovereign
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investor
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and
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Financial
analyst:
Gunter Deuber,
RBI Vienna
be therefore crucial that the overall process will continue.
Financial analyst: Gunter Deuber, RBI Vienna
Key economic gures and forecasts*
0
General budget balance (% of GDP)
Public debt (% of GDP, r.h.s.)
General budget balance (% of GDP)
Public debt (% of GDP, r.h.s.)
2010
2011
2012
2013
2014
2015e
36.2
36.9
36.0
36.1
37.2
38.7
40.3
Real GDP (% yoy)
1.2
2010
0.6
2011
-2.6
2012
-1.0
2013
2.6
2014
2.4
2015e
2.3
2016f
Industrial GDP
output(EUR
(% yoy)
Nominal
bn)
Key economic
gures
Nominal
GDP (EURbn)
and forecasts*
2016f
7.1
36.2
2.1
36.9
-0.7
36.0
-1.1
36.1
1.4
37.2
2.3
38.7
2.0
40.3
Unemployment
rate (avg, %)
Real GDP (% yoy)
7.3
1.2
8.2
0.6
8.9
-2.6
10.1
-1.0
9.8
2.6
9.6
2.4
9.3
2.3
Producer prices
% yoy)
Industrial
output (avg,
(% yoy)
2.0
7.1
3.8
2.1
1.0
-0.7
0.3
-1.1
-1.1
1.4
0.5
2.3
1.7
2.0
Consumer pricesrate
(avg,
% yoy)
Unemployment
(avg,
%)
1.8
7.3
1.8
8.2
2.6
8.9
1.8
10.1
0.2
9.8
0.3
9.6
1.5
9.3
Consumerprices
prices(avg,
(eop,%%yoy)
yoy)
Producer
1.9
2.0
2.0
3.8
2.7
1.0
1.5
0.3
0.3
-1.1
0.5
1.2
1.7
General budget
of GDP)
Consumer
pricesbalance
(avg, % (%
yoy)
-5.9
1.8
-6.6
1.8
-4.0
2.6
-14.9
1.8
-4.6
0.2
-3.5
0.3
-3.1
1.5
38.6
1.9
46.9
2.0
54.0
2.7
73.0
1.5
80.0
0.3
82.0
0.5
81.2
1.2
-0.1
-5.9
0.2
-6.6
2.7
-4.0
5.6
-14.9
5.8
-4.6
4.8
-3.5
4.6
-3.1
112.4
38.6
108.8
46.9
113.5
54.0
110.7
73.0
110.1
80.0
108.5
82.0
105.4
81.2
Public debtprices
(% of (eop,
GDP) % yoy)
Consumer
Current account
General
budget balance (% of GDP)
Gross
(% of GDP)
Public foreign
debt (%debt
of GDP)
* euro area
entry on
1 January
Current
account
balance
(%2007
of GDP)
Gross foreign debt (% of GDP)
-0.1
0.2
2.7
5.6
5.8
4.8
4.6
112.4
108.8
113.5
110.7
110.1
108.5
105.4
* euro area entry on 1 January 2007
Source:
Thomson
Reuters, RBI/Raiffeisen
GSS
Press
| September
2015 RESEARCH
Please note the risk notications and explanations at the end of this document
23
Please note the risk notications and explanations at the end of this document
23
7
MARKET ROUNDUP
AZERBAIJAN
Profound market restructuring
A new securities market law, worked out within the implementation of the State Program
on the development of the securities market in 2011-2020, provides for a cardinal restructuring of the stock market. The document allows for a long transition period and therefore
will come into force in full scale only on 1 January 2016. The law defines the short-term
prospects for Azerbaijan in pushing a quantitative and qualitative development of the
securities market, enforcement of investor rights, providing wider access to financial resources and expansion of financing services.
The main provisions of the law are the following:
- All securities should be uncertificated and traded only in e-format;
- Only licensed participants will be able to conduct professional activities on the market;
- Only investment companies established and operating as joint-stock companies will be
able to become professional participants;
- The Central Depository of Azerbaijan and the Central Clearing Chamber will be established on the basis of a National Depository Center. Clearing banks will be established
under the Clearing Chamber;
- All depositories and organizations keeping register of securities owners and shareholders must transfer their investment securities to the Central Depository (the National
Depository Center) by 15 September;
- The Central Bank of Azerbaijan will have the right to make investments into the securities
market;
Spotlight news
RS: Telekom privatization
The privatization of the state-owned
mobile and landline provider Telekom Srbija stood in the limelight this
summer. The process is expected to
be completed by the end of the year.
So far, it has attracted much more interest from private equity funds than
from peers, for which it is difficult to
assess whether the company will be
sold at all, and if, at which price.
By 1 January 2016, all brokers, dealers and asset managers shall apply for an investment
company licence and the Stock Exchange is supposed to bring its activities into harmony
with the new requirements. As soon as the law comes into force, all clearing and depository licenses will become invalid.
Our view
Restructuring the market in accordance with the new law will require serious amendments to the legal and regulatory framework. As an example, the President of Azerbaijan
instructed the Cabinet of Ministers to prepare proposals on bringing the Presidential acts in
accordance with the law: define the rules of issue and turnover of the state and municipal
securities and prepare the list of offshore areas, etc.
8
MARKET ROUNDUP
Mensur Hodžic,
Head of GSS Croatia
CROATIA
Zagreb Stock Exchange to take over
Ljubljana Stock Exchange
This summer the Zagreb Stock Exchange (ZSE) has signed an
agreement to take over 100% of the Ljubljana Stock Exchange
(LJSE) shares from the CEE Stock Exchange Group (CEESEG).
Following a capital increase by the Zagreb Stock Exchange,
the transaction is planned to close in the fourgh quarter 2015.
It is expected that the takeover could bring positive effects to
the Croatian and Slovenian capital markets and both exchanges, simultaneously resulting in numerous synergies. In respect
of turnover, the members of both exchanges can benefit from an easier access to new
markets. The financial position of ZSE should be further strengthened while providing IT
services to LJSE. Moreover, ZSE will expand its service of allocating and administering
Legal Identifier Codes (LEI) to legal entities to the Slovenian financial services market.
Also, it is planned for LJSE to be included in the SEE LINK regional trade integration
project whose initiators are Bulgarian, Macedonian and Croatian stock exchanges,
with the implementation at the beginning of 2016.
Spotlight news
RS: IMF talks in the second round
The International Monetary Fund
(IMF) mission has opened talks with
the government within the second
review under the EUR 1.2 bn 3-year
stand-by arrangement. The cabinet
will suggest to hike the pensions
(2%) and public sector wages (4%
- 6%), backed by an outstanding
budget performance. The talks will
also cover the restructuring of public
companies including power utility
Elektroprivreda Srbije (EPS), natural
gas company Srbijagas, and the national railways, Železnice Srbije.
In addition to the takeover agreement, ZSE and the Vienna Stock Exchange (part of
CEESEG) also signed a letter of intent, forming a partnership with the key component
of sharing trading technology. Subject to successful completion of the negotiations on
the respective terms, Vienna will provide Zagreb with its trading system, software, interfaces and expertise.
Our view
By signing the takeover agreement, ZSE confirms that it is on-trend with the development
of capital market in the region. Uniform standards and the use of common technology
will benefit both regional and large international clients. We believe that the consolidation in stock exchange ownership can lead to higher turnover at both exchanges and will
strengthen their negotiating power while providing new investment products and trade
technologies in accordance with the law: define the rules of issue and turnover of the state
and municipal securities, prepare a list of offshore areas, etc.
See also: Interview with LJSE CEO, Mr. Andrej Šketa, in the front section of this
publication.
9
MARKET ROUNDUP
Radek Ignatowicz,
Head of GSS Poland
POLAND
Act on controlling investments in strategic companies
A new regulation introducing rules governing investing in strategic companies has been approved by Parliament and was
signed by the President in the beginning of August. The law
regulates investments in specific strategic companies in Poland.
It provides that parties interested in acquiring shares and thereby crossing the thresholds of 20%, 25%, 33% or 50% of voting
rights, need to seek approval from the governing body, i.e. the
State Treasury Minister. Once the application is filed, the Ministry will have 90 days to inform the investor of its decision.
In case an appropriate notification is not submitted, the investor will be subject to either
a fine of up to PLN 100,000,000, a prison sentence between six months to five years, or
both. The list of strategically important companies will be compiled and published by the
Council of Ministers.
Companies in the following sectors can be qualified as strategic companies:
1) production of electricity
2) production of motor gasoline or diesel
3) pipeline transportation of crude oil, motor gasoline or diesel
4) warehousing and storage of motor gasoline, diesel, natural gas
5) underground storage of crude oil or natural gas
6) manufacturing of chemicals, fertilizers and chemical products
7) p
roduction and trade of explosives, arms, ammunition and technology
for military or police
8) re-gasification and melting gas
9) shipment of crude oil and its products in seaports
10) distribution of natural gas or electricity
11) telecoms
12) gas transmission
The act will come into effect 30 days after its publication in the Official Gazette.
Spotlight news
RU: Investment rules for NGIFs
liberalized
The Central Bank of Russia (CBR) is
to widen investment opportunities
on the debt market for non-governmental pension funds (NGIF) while
imposing additional restrictions on
securities of international organizations.
According to the draft amendment,
CBR will lift the following investment
limitations:
-
maximum ratio of corporate debt
instruments in NGIF portfolio (as of
today it equals to 80% of the NGIF
portfolio),
-
purchase of one issue of government bonds (as of today the maximum ratio of one single issue is
35%),
- investments in mortgage participation certificates secured by nonresidential property.
On the contrary, CBR will remove
foreign securities (including those
listed on Russian exchanges) from
the list of instruments permitted for
NGIF investment. Currently this type
of securities’ exposure to NGIF portfolios is about 0.32%.
Our view
The new regulation introduces a control mechanism designed to ensure public safety and
order. As a matter of fact, in the past it had happened occasionally that a strategically
important company was subject to a hostile takeover attempt.
10
MARKET ROUNDUP
Bogdana Yefremova,
Head of GSS Ukraine
UKRAINE
Regulator takes steps against junk securities
Measures to relieve the securities market of junk papers had
been announced by the National Securities and Stock Market
Commission (NSSMC) in April this year, while the actual work
was enabled by the implementation of the respective criteria
in a later stage. According to data provided by NSSMC, the
interim results seem impressive: by the beginning of August, the
regulator has suspended trading in securities of 79 issuers, combining a total capitalization of UAH 460 bn (or EUR 19 bn). This
figure equals the state budget of Ukraine for 2015 or 30% of
the country’s GDP; and NSSMC is going to continue its screening efforts. Only 10% of
the trades in such shares went via the stock exchanges, while the rest took place on the
OTC market.
It is not a secret that the local stock market, far from being an efficient mechanism for
conversion of savings into investments, is often used for tax optimization, inflation of bank
assets or insurance companies or even money laundering. With the aim of Ukraine’s full
integration into the global financial system in mind, the regulator is trying to limit such
practices and increase the liability for abuse in the local financial market. Therefore, apart
from suspending the trades, investigations on price manipulations have been initiated
against brokers actively involved in inflating the prices of such junk shares.
Our view
These radical steps to clean up the market are in line with FATF requirements as well as
NSSMC’s plan to become a member of IOSCO. They stand for the strategic transformation of the local stock market into a global player.
11
© Maribor Tourist Office
CITY BREAK
Maribor: Wine tradition
on the Drava
The second largest city in Slovenia, Maribor, is nestled between the green Pohorje
Mountain on one side and the wine-growing hills on the other. The city is located
by the river Drava and in its centre grows
the oldest vine in the world, with over 450
years of age. Beside this beautiful plant of
respectable age there are many other reasons why Maribor and Slovenian Styria
are worth a visit.
To discover some historical facts about Maribor, the old town will enchant you with
its cultural-historical sights and the warm
hospitality of its inhabitants. Take time and
discover the most attractive corners of our
city: wonderful city squares with remarkable buildings, monuments and sacral facilities, or the ancient Lent quarter by the river.
Poštna ulica is just one of a number of little
streets with inviting cafés and teahouses,
where, full of experiences, you can conclude your sightseeing trip around the city
and chat with your company.
For those who like adventures, a ride with
a timber raft along the Drava offers a completely new view of the city. After discovering the city centre, the right address for
you and your dearest would be Rožmarin,
where seasonal and light Mediterranean
cuisine with Štajerska touch is served.
Jewels of nature away from the city noise
Are you more a person who likes to escape
the city noise and have a walk through
peaceful nature? Then you should visit the
City Park, where you will discover three
ponds, the popular aquarium and terrarium, and the children’s playground far
away from the traffic noise. The path which
weaves through all types of trees, artfully
arranged flower beds, water fountains,
and by the hill of roses, will let you relax.
Settle at the banks by the beautiful ponds to
enjoy the company of water birds or take a
rest under the crowns of giant trees.
An easy day can continue in wine cellar
Brigadir with its 250 year tradition. Excellent wines, but also homemade food, e.g.
bograc, a stew with three different meats,
ˇ a special Primorska dish made
or jota,
from sauerkraut or turnip, beans and drinking sausage.
Heaven on earth just 10 minutes away
For relaxation and recreation we recommend to visit Pohorje, a beautiful mountain
massif with a cool breeze. By car, you
are there within 10 minutes from the city
centre. Šumik, the Primeval forest, pure
Pohorje water and moors with lakes, the
Giant peacock moth (the largest butterfly
in Europe) and other precious animal spe-
Some of my top picks for
'pit stops' to charge one's
batteries are:
Slovenian cuisine:
Gostilna Pri treh ribnikih
(Restaurant 'The three ponds')
Ribniška 9
Modern cuisine:
Rožmarin
Gosposka ulica 8
Restavracija pri Florjanu
Grajski trg 6
Cafes and bars:
Isabella
Poštna ulica 3
Kavarna Astoria
Slovenska 2
cies make this place a heaven on earth for
hikers, skiers, bikers and other adrenaline
hungry.
Vesna Grgicˇ
Sales & Relationship Manager,
GSS Slovenia
12
HAVE YOU MET
From theater to banking
Primož Kovacic, Head of GSS Slovenia, provides an insight into his profession
Where did you start your professional
career?
When I was in my third year at university,
studying banking and finance, I started
working at the Maribor Theater Festival
(Borštnikov festival) as a member of the
organizational team. One day, I received
an invitation to work at the marketing department of the Slovene National Theatre
in Maribor and I took the job although I
had not yet graduated.
It was a very interesting and inspiring period of my life, but after finishing university, I decided to apply for a job at Krekova
Banka as a capital markets analyst. At
that time, stock exchange and capital
markets were something new in Slovenia
and captured my interest, particularly during a one week course at the Commodity
Exchange of Ljubljana to earn their brokerage license. Two years after, the bank
was sold to Raiffeisen Bank International
and within the next two years I was appointed Head of Investment Banking.
When the bank launched custody in
2009, I was given additional responsibilities as the Head of Custody.
What do you like about your job? And
what do you find difficult?
In general, I like the dynamics of my job.
The markets, products and services are
constantly evolving and this brings the
need for continuous learning. I enjoyed
working in several different areas of the
capital markets, what has provided me
with a wealth of understanding and knowledge that permits me to add value in my
current job.
I also like the fact that we are a part of a
large international bank. This gives me
the opportunity to meet and work with colleagues and clients from many different
countries. The difficult thing about my job
is staying on top of all the legislative changes. And sometimes it is hard to accept
that we are a small market with limited
opportunities.
What are the biggest potentials you see
for your market?
It is a fact that Slovenia with its size will
never be very important on a global level.
Nevertheless, there is growth potential
waiting to be explored. Certainly, more
interesting stocks listed on the stock exchange could bring more interest both
from domestic and foreign clients and thus
increase the turnover. For example, many
fast growing companies could exploit the
possibility to raise fresh capital over the
stock exchange, instead of applying for a
bank loan. So could do companies in
which the state has an important stake
and which are not listed on the stock exchange. Moreover, the introduction of socalled pension accounts with favorable
tax treatment could increase interest in the
stock market.
What is your favourite place in your city?
Maribor is a lovely old town with plenty of
nice places. Whenever I want to relax or
do some sports, I go to Pohorje or other
surrounding hills, which are only minutes
away from the city center, and if I want to
go for a coffee, I head to the old town that
spreads all the way from Lent on the banks
of the river Drava up to the City park
below the Piramida hill.
How do you spend your spare time?
Mostly with my family and friends. Cycling, running and canoeing on lakes and
rivers are my favorite sports. Holidays are
usually reserved for traveling with a camper, because I find it hard to stay at one
place for more than a week. When I am
at home, I like to do gardening around
our house and the evenings are reserved
for a good movie or just for sitting outside
in the garden.
13
CONTACT US
GSS Central Team
Raiffeisen Bank International AG
Am Stadtpark 9
1030 Vienna, Austria
www.rbinternational.com
Attila Szalay-Berzeviczy
Head of GSS
[email protected]
Phone: +43 1 71707-8252
Jürgen Sattler
Head of GSS Regional Management
[email protected]
Phone: +43 1 71707-1882
Bettina Janoschek
Head of GSS Sales & Relationship Management
[email protected]
Phone: +43 1 71707-1820
Austria
Raiffeisen Bank International AG
Am Stadtpark 9
1030 Vienna, Austria
Anita Fröch
Head of GSS Austria
[email protected]
Phone: +43 1 71707-3040
www.rbinternational.com
Albania
Raiffeisen Bank Sh.a.
“European Trade Center”
Bulevardi “Bajram Curri” Tirana
Mirela Borici
Head of GSS Albania
[email protected]
Phone: +355 4 2381000-1074
www.raiffeisen.al
Belarus
Priorbank JSC
31-A, V. Khoruzhey Str.
220002 Minsk
Yury Dorofey
Head of GSS Belarus
[email protected]
Phone: +375 17 2899102
www.priorbank.by
Bosnia and Herzegovina
Raiffeisen BANK d.d.
Bosna i Hercegovina
Zmaja od Bosne bb
71000 Sarajevo
Draženko Bobaš
Head of GSS Bosnia
[email protected]
Phone: +387 33 287-153
www.raiffeisenbank.ba
Bulgaria
Russia
Raiffeisenbank (Bulgaria) EAD
55, Nicola Vaptzarov Blvd., Business Center
Expo 2000, 1407 Sofia
Maria Lazova
Head of GSS Bulgaria
[email protected]
Phone: +359 2 91985-463
www.rbb.bg
AO Raiffeisenbank
Smolenskaya-Sennaya Sq. 28
119020 Moscow
Evgenia Klimova
Head of GSS Russia
[email protected]
Phone: +7-495-721 9900
www.raiffeisen.ru
Croatia
Serbia
Raiffeisenbank Austria d.d.
Petrinjska 59
10000 Zagreb
Mensur Hodžic´
Head of GSS Croatia
[email protected]
Phone: +385 1 6174-327
www.rba.hr
Raiffeisen banka a.d.
Djordja Stanojevica 16
11070 Novi Beograd
Ivana Novakovic´
Head of GSS Serbia
[email protected]
Phone: +381 11 2207572
www.raiffeisenbank.rs
Czech Republic
Slovakia
Head of GSS Czech Republic
[email protected]
Phone: +420 234 40-1481
www.rb.cz
Tatra banka, a.s.
Hodžovo námestie 3
81106 Bratislava
Peter Uhrin
Head of GSS Slovakia
[email protected]
Phone: +421-2-5919 2134
www.tatrabanka.sk
Hungary
Slovenia
Raiffeisen Bank Zrt.
Akadémia utca 6
1054 Budapest
Zsuzsanna Haraszti
Head of GSS Hungary
[email protected]
Phone: +361 484 4362
www.raiffeisen.hu
Raiffeisen Banka d.d.
Zagrebška cesta 76
2000 Maribor
ˇˇ
Primož Kovacic
Head of GSS Slovenia
[email protected]
Phone: +386 22293119
www.raiffeisen.si
Poland
Ukraine
Raiffeisenbank a.s.
Hvezdova 1716/2b
14078 Prague 4
ˇ
Vit Cermák
Raiffeisen Bank Polska S.A.
(Raiffeisen Polbank)
Piękna 20 Str.
00-549 Warsaw
Radek Ignatowicz
Head of GSS Poland
[email protected]
Phone: +48 22 585-2000
www.raiffeisen.pl
Raiffeisen Bank Aval JSC
9, Leskova Str.
01011 Kiev
Bogdana Yefremova
Head of GSS Ukraine
[email protected]
Phone: +380 44 49879 32
www.aval.ua
Romania
Raiffeisen Bank S.A.
246C Calea Floreasca
014476 Bucharest 1
Andrei Mezdrea
Head of GSS Romania
[email protected]
Phone: +40 21 30612-89
www.raiffeisen.ro
14
IMPRINT & DISCLAIMER
Imprint
1) Information requirements pursuant to the Austrian E-Commerce Act
Raiffeisen Bank International AG, Registered Office: Am Stadtpark 9, 1030 Vienna. Postal address: 1010 Vienna, POB 50
Phone: +43-1-71707-0, Fax: + 43-1-71707-1715
Company Register Number: FN 122119m at the Commercial Court of Vienna
VAT Identification Number: UID ATU 57531200
Austrian Data Processing Register: Data processing register number (DVR): 4002771
S.W.I.F.T.-Code: RZBA AT WW
Supervisory Authorities:
As a credit institution pursuant to § 1 of the Austrian Banking Act, Raiffeisen Bank International AG is subject to supervision by the Financial Market Authority and the
Austrian Central Bank. Further, Raiffeisen Bank International AG is subject to legal regulations (as amended from time to time), in particular the Austrian Banking Act
(Bankwesengesetz) and the Securities Supervision Act (Wertpapieraufsichtsgesetz).
Membership: Austrian Federal Economic Chamber, Federal Bank and Insurance Sector, Raiffeisen Association
2) Statement pursuant to the Austrian Media Act
Publisher of GSS Press: Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna
Media Owner of GSS Press: Zentrale Raiffeisenwerbung, Am Stadtpark 9, 1030 Wien
Producer: Marketing, Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna
Editors: Jürgen Sattler, Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna
Society Commitee Zentrale Raiffeisenwerbung:
Dr. Leodegar PRUSCHAK (Chairman), Petra WALTER (Deputy Chairman), Stephan MARENT (Deputy Chairman)
Other committee members Zentrale Raiffeisenwerbung:
Mag. Rainer SCHNABL, Franz POSPISCHIL, Bernd NÖHRER, Mag. Maximilian EDER, Mag. Gertraud FRANK, Mag. Martin KOFLER, Markus FRIEDRICH,
Katharina STÖGNER, Mag. Clemens GANTAR
Zentrale Raiffeisenwerbung is a registered society. Society purpose and activities of Zentrale Raiffeisenwerbung are (inter alia) a joint communication work
(advertising and public relations).
Basic tendency of the content of GSS Press:
GSS Press presents services and products of the Group Securities Services unit of Raiffeisen Bank International AG and its subsidiaries. Aiming at a professional
audience, GSS Press reports about developments in the financial markets, with a particular focus on post-trade infrastructure. The publication is available free of charge.
Images: Photographs and illustrations provided by Raiffeisen Bank International, Attila Szalay-Berzeviczy and the organizations featured in this issue.
Disclaimer
This document has been published by Raiffeisen Bank International AG. This document is for information purposes and may not be reproduced or distributed to other persons.
This document shall not be considered as financial, investment, legal or tax advice. This document constitutes neither a solicitation of an offer nor a prospectus in the sense
of the Austrian Capital Market Act (KMG) or the Stock Exchange Act or any other comparable foreign law. An investment decision in respect of a security, financial product
or investment must be made on the basis of an approved, published prospectus or the complete documentation for the security, financial product or investment in question,
and not on the basis of this document. This document does not constitute a personal recommendation to buy or sell financial instruments in the sense of the Austrian Securities
Supervision Act or any other comparable foreign law. Neither this document nor any of its components shall form the basis for any kind of contract or commitment whatsoever.
This document is not a substitute for legal or tax advice or the necessary advice on the purchase or sale of a security, investment or other financial product. In respect of the sale
or purchase of securities, investments or financial products, your banking advisor can provide individualised advice which is suitable for investments and financial products.
This analysis is fundamentally based on generally available information and not on confidential information which the party preparing the document has obtained exclusively
on the basis of his/her client relationship with a person. Unless otherwise expressly stated in this publication, the publisher deems all of the information to be reliable, but
does not make any assurances regarding its accuracy and completeness. The publisher shall not have any liability for any representations (expressed or implied) regarding
information contained in, or for any omissions from, this document or any other written or oral communications transmitted to the recipient in the course of its preparation.
The information in this publication is current, as of the creation date of the document. It may be outdated by future developments, without the publication being changed.
The data and statements contained in this document are strictly limited to the matters stated herein and shall not to be read as extending by implication to any other matter.
This document is intended for institutional investors only. Neither this document nor any part of its content may be relied upon by any other person. This document is not
intended for retail/private investors. Requests resulting from this document will only be responded to, if the respective person is an institutional investor.
15
ATTILA‘S PHOTO BLOG
PHOTO OF THE MONTH
by Attila Szalay-Berzeviczy
Tina Maze, Slovenia’s record breaking ski champion,
in the Olympic slalom
Sochi, Russia – February 2014
Upcoming Events
SIBOS
12-15 October, Singapore
NEMA Americas
27-28 October, Miami
16