BRATISLAVA, June 27, (WEBNOVINY) — Almost two-thirds of company directors in Slovakia are planning to finance company’s further expansion from their own sources this year, according to a survey carried out by the consulting company PwC, which shows that 60 percent of CEOs in Slovakia have such plans. As much as 70 percent of CEOs are plotting financing from own sources in the neighboring Czech Republic.
None of polled CEOs is considering financing through the capital market or from public sources in the Czech Republic and the situation in Slovakia is very similar. “Only almost 3 percent of the addressed CEOs are interested in public sources. Slow recovery is apparent in the area of venture capital and private equity funds, which 6.5 percent of addressed CEOs are planning to finance the growth of their company, compared with only 3 percent in the Czech Republic,” stated PwC in its report.
Companies will use their own capital as the principal source of financing in both countries in the upcoming period. The financial market in Slovakia seems to have far better chance to recover – companies are considering extending their portfolios of potential sources of financing. “The crisis has taught CEOs a lesson that they have to rely on themselves also in financial matters. Banks have tightened credit terms and entrepreneurs have come to understand that the most secure source of financing can be found within the company,” said Tomas Kuca, partner at the Consulting Enterprise Performance Management Department at PwC.
About 17 percent of CEOs in Slovakia are contemplating bank loans. Besides that, they are also considering financing on the credit market or using private or venture capital. PwC conducted the survey between January and March of this year on a sample of 406 top representatives of Slovak companies operating in various sectors.
SITA
