In 2001, the Investment Fund for Central and Eastern Europe, IØ, entered into agreements to invest a total of DKK 485 million in Danish companies’ business projects in Central and Eastern Europe. This is a 46 per cent increase compared to the year before.
Of DKK 485 million, DKK 383 million went to new projects and DKK 102 million to additional financing for projects that IØ helped start earlier.
IØ co-financed 25 new projects in 2001 in co-operation with Danish companies.
Geographically, the investments are divided on more countries than before, as almost every other project up until 2000 was placed in Poland.
In 2001 the new projects were distributed as follows:
- 7 in Poland
- 6 in the Baltic States (Estonia 1, Latvia 2, Lithuania 3)
- 5 in the Czech Republic
- 2 in Hungary
- 1 in each of the countries Romania, Russia, the Slovak Republic and the Ukraine
Furthermore, IØ invested capital in a holding company with activities in several East European countries. The company accounts for the largest investment on IØ’s part with DKK 30 million in share capital and DKK 90 million in loans.
IØ moves east
Since 1990, IØ has invested well over 3.0 billion in about 310 projects. More than 70 per cent of the funds have been placed in countries which are currently negotiating for accession to the EU.
When those countries obtain an agreement with the EU, it has been decided that IØ may no longer participate in the co-financing of new projects in those countries, and IØ’s role in the applicant countries will only be related to “finalising existing activities” and exiting the current portfolio – a task which IØ expects to complete within the next 5-8 years.
IØ’s Managing Director Sven Riskær, says:
“In the rest of Central and Eastern Europe, including Russia and the Ukraine, the number of investment opportunities will continue to grow, resulting in a need for advice and investments from IØ. We will carry through detailed and informative analyses, which will enable Danish companies to make a realistic weighing of opportunities and risks in the countries in question.”
During 2002 IØ plans to open an office in Moscow. The office is to help IØ and Danish companies make analyses and help strengthening contacts to potential partners, finance institutions and authorities, primarily in Russia, but also in other CIS republics. Finally, it will improve IØ’s possibilities to serve project companies and partners in Russia.
For further information, please contact
Managing Director Sven Riskær,
Tel: +45 33 63 75 00.