BNP Paribas Optimistic About Eastern Europe

BNP Paribas still plans to build on its presence in emerging European countries Poland and Turkey, even as it pulls back from Ukraine, the bank’s chief financial officer told CNBC on Wednesday.

France’s biggest bank by market value announced earlier this week it would cut its Ukrainian staff by 1,600 by 2015 and shut 84 branches, following the annexing of Ukraine’s Crimea region by Russia last week. The West has responded by instigating visa bans and asset freezes against a group of Ukrainians and Russians, and banning Russia from the G-8 group of industrialized countries unless its alters its stance.

However, CFO Lars Machenil said BNP Paribas was undeterred from emerging Europe in general, although its main areas of growth were the U.S., Asia and Germany. He said BNP Paribas remained interested in growing its presence in Turkey and Poland in particular, and would continue in these countries for the mid-to-long term.

“These are dynamic areas and we are very pleased that we can double our footprint in Poland to around 4 percent, 4 percent being a kind of minimal stepping stone that you need as a springboard for growth,” Machenil told CNBC on Wednesday.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza