Reviving the 'Made in Czechoslovakia' trading label to further develop export opportunities for Slovak and Czech companies is the aim of an agreement signed by Slovakia's Eximbank CEO Igor Lichnovský and Czech Export Bank CEO Karel Bureš in Bratislava on Tuesday.
In addition to creating more scope for joint export projects and foreign banking transactions with third countries, the agreement aims to expand opportunities for cooperation in the form of obtaining information on possible importers and exporters.
Reviving the Czechoslovak brand attempts to cash in on strong links in foreign trade and production between the Czech Republic and Slovakia, with the common agreement aiming to promote exports to countries in which the name Made in Slovakia conveys an image of quality and integrity.
At a glance, the composition of the loan portfolio offered by the Czech Export Bank reflects the fact that bank is using the label to promote exports and loans to riskier territories, with much of the loan portfolio being allocated outside the European Union (EU). For example, the largest portion; 44 percent of funds allocated to loans will be aimed at the Russian Federation. In second place is Turkey with 15 percent, followed by Georgia, Azerbaijan and Ukraine. Out of EU countries, Slovakia accounts for most of the remaining loans at 16 percent. Generally, more than half of the loans from the Czech Export Bank are to be used for machinery and equipment for electricity generation. Whether the move will pay off, and if the reputation of the Czechoslovak name can amount to more than simply an increase in banking products remains to be seen.
