Poland generates strong growth
Published 26 October 2011
Recession avoided, outlook promising
Poland survived the global economic downturn without undergoing a recession and is experiencing steady, robust economic and trade growth. Janusz Dedo, president of the board of HSBC Bank Polska SA, has more than 20 years' experience in Poland's financial markets. Here he answers questions about the country that joined the European Union in 2004 and whose trade volumes are predicted to grow by 125 per cent to the end of 2025.
What are the most promising growth areas for HSBC in Poland?
The strongest opportunity for HSBC in Poland lies in servicing corporate and institutional clients.
As the 28th biggest exporter and 24th biggest importer globally, Poland offers a big cross-border trade opportunity. Indeed, it was recently ranked the sixth most desirable FDI destination by transnational corporations.
Through its global network and international connectivity, HSBC is well positioned to help Polish companies trading across borders and to facilitate investment flows.
HSBC was the first bank in Poland to launch RMB trade settlement for companies trading with China and, in addition, offers a full range of FX, cash management, trade finance and factoring products.
On the wholesale banking side, HSBC has built a strong track record in advising and raising funding for the Polish Government and corporates.
HSBC ranked third in the 2011 Primary Dealership competition organised by the Polish Republic's Ministry of Finance, with the best results of all global banks taking part in this competition.
Polish economic performance has been remarkably steady of late, averaging nearly 4.5 per cent in the past four quarters
How has the global and European economic turbulence affected Poland's general economic growth?
Poland was the only EU country that managed to avoid recession during the 2008 crisis and is the leading emerging market in the EU.
Polish economic performance has been remarkably steady of late, averaging nearly 4.5 per cent in the past four quarters, including 4.3 per cent y-o-y in Q2 2011. However, in the face of the renewed Eurozone crisis with sizeable twin deficits, the zloty has recently weakened sharply. Given subdued consumer confidence, uncertainty in core European markets and slowing trade, HSBC expects Polish growth to slip to around 3.0 per cent next year – still outpacing the EU but notably lower than previously.
What were the most memorable deals involving your office in the past year or so?
Throughout 2010, HSBC won three out of the last four government bond mandates and was named 'Best Debt House in Poland' by Euromoney magazine.
In February 2010, HSBC acted as Global Coordinator and Bookrunner of Millennium Bank's PLN1 billion (USD323.3 million) rights issue (Millennium Bank is a part of the BPC Group and the sixth-biggest bank in Poland).
In September 2010, HSBC acted as Sole Financial Adviser of disposal of Wedel by Kraft Foods (Wedel is one of the biggest sweets manufacturers in Poland, with 160 years of history and a very strong brand. It is now owned by LOTTE Group).
In October 2010, HSBC acted as Joint Bookrunner of PKO BP's Eurobond issue (PKO BP is the biggest bank in Poland).
In March 2011, HSBC acted as the Lead Arranger of PLN1.60 billion (USD517.3 million) Senior Facilities assisting Cyfrowy Polsat SA in the acquisition of all of the shares of Telewizja Polsat S.A. (Cyfrowy Polsat SA is the unchallenged leader in the Polish pay TV market and, as a result of the acquisition, the Cyfrowy Polsat Group became the undisputed media market leader in Poland).
How has the make-up of commercial customers in Poland changed in the past decade?
They are more open to different bank products and services and less dependent on self-funding. This is evidenced by growing interest in factoring that can be an interesting alternative to operating credit that is a very popular solution among Polish companies.
What's more, firms are increasingly using different kinds of bank products for cash management, trade financing and protection against currency risk purposes. Companies' responses to the launch of our RMB settlements offer reflect the fact that they more and more often analyse the question of currencies they use in trade settlements.
Polish businesses' attitude is changing in the case of both short-term and long-term financing. Growth strategies more and more often include financing investments not only from investment credits. The interest in corporate bonds is growing, both domestic ones as well as Eurobonds.
What changes do you expect to see in Poland as a result of the 9 October elections, when the governing coalition led by Civic Platform was re-elected?
It was the first time a ruling party/government has been re-elected in the history of democracy in Poland. Hopefully, this will bring continued political stability. There are some major challenges the government will have to face, including the reform of public finance.
Janusz Dedo
Janusz Dedo was appointed President of the Board of HSBC Bank Polska SA in August 2006.
He has more than 20 years of experience in the Polish financial market and has been with HSBC for five years. Before joining HSBC, he was deputy President of the Board at Bank Pekao SA (Poland's second-biggest bank and a part of UniCredit Group) from 1998 to 2004. He was also the President of Bank Pekao Ukraine, by the end of July 2006, and the only Polish member of the global board of MasterCard.
For many years, Mr Dedo has been a member of the Board of the Polish Bank Association and in June 2011 he was additionally appointed as the President of the Board at the Polish Association of Private Employers - Banks and Financial Institutions. This organisation is part of Polish Confederation of Private Employers 'Lewiatan'.
He holds a master's degree in economics and studied at the University of Minnesota. He started his professional career in the Institute for International Economics, specialising in analysis of global commodity markets. Since 1987 he worked at the National Bank of Poland (Poland's central bank) at the Office for Cooperation with the World Bank.
He enjoys sailing and is married with two adult children.
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