The Danish companies’ investment activity in Central and Eastern Europe continue unabated, the Annual Report from the Investment Fund for Central and Eastern Europe, IØ, shows.
The number of investments with IØ participation in 2000 was 48 against 41 the previous year. 26 investments were in new commercial projects, while 22 were additional investments in already established project companies.
The Investment Fund for Central and Eastern Europe (IØ) is a self-governing institution. IØ was created by the Danish government after the upheavals in Central and Eastern Europe in 1989 and offers to partipate in Danish companies’ investment projects in this area. Many Danish companies utilize this opportunity for financial risksharing and advice.
In 2000 IØ invested a total of DKK 381 million in the project companies, of which DKK 214 million were invested in new companies. Together with the partners a total of DKK 1,400 million were invested in the new projects.
Every Second Project in Poland
Half of the new project companies are in Poland. This corresponds to the investment pattern of previous years. Five of the projects in Poland involve activities which directly result in environmental improvements.
The Baltic countries are also favoured by the Danish investors. In 2000 together with IØ and local partners Danish companies established three new projects in Latvia and three in Lithuania.
Other investment countries for new projects in 2000 were Bulgaria, The Czech Republic, Rumania, Slovakia and Ukraine.
The projects are often established as joint ventures, in which the Danish company, a local partner and IØ create a private limited company. In some projects the Danish company makes the investment together with IØ only, i.e. without a local partner.
Normally IØ participates as co-investor for the first 6-8 years in the project companies, and contributes a.o. with knowledge of the host country in question and experience from earlier projects. The Fund withdraws, once the new project is well consolidated. The funds thus released can be invested in new projects.
Benefits the Environment and the Occupational Health and Safety Conditions
“An environmental review of the Danish project companies with IØ participation in Poland has documented that in general the Danish investments result in improvements of the occupational health and safety conditions and an increased environmental awareness by the management and the employees. Often an unneccessarily large energy consumption is diminished, and a reduction of the pollution is achieved, a pollution which through the air or via the Baltic Sea also reaches Denmark. Hence, the investments not only benefit the economy, but also the welfare of the population in the investment countries as well as here in Denmark”, states the Fund’s managing director Sven Riskær.
For further information please contact
Deputy Managing director J. Dan Jensen