ING - Your access to the CEE

Performance of the individual CEE countriesRussia is a dominant factor with its share of 44% of GDP in the region. Next in line are Turkey (18%) and Poland (10%). Together these countries represent almost 3/4 of total GDP in the region.

Not all countries within CEE region were able to escape negative growth rates. Countries hardest hit even in 2013 are Slovenia, Croatia, Hungary, Czech Republic and Serbia. These countries belong not by accident to the ones with the strongest trade links with the Euro region. The best perform-ing countries are Russia, Turkey, Poland and Kazakhstan. The economies of Russia and Kazakhstan are less strongly linked to the Euro region. Their economic development heavily depends on the demand for oil and gas plus the oil price. The demand for oil was infected by the global crisis as well. Thanks to the moderate global recovery since 2012 energy demand and energy prices increased contributing to the favourable economic performance of both energy ex-porting countries. Turkey is actively shifting its trade flows to rapidly developing countries in the Middle East and Africa.

Doing business in Central and Eastern Europe means you need more from your bank than just a full range of products at your disposal. At ING we aim to simplify your daily banking operations and continuously find new ways to enhance your experience of working with us, and streamline your payments and cash management business. This includes updating you on economic developments in the region.

Catching up continuesLike other parts of Europe, Central & Eastern Europe (CEE) suffered volatility and an economic downturn during the global financial crisis and subsequent eurozone crisis. CEE is proving more resilient and flexible thanks to its ability to di-versify its reliance on the eurozone, and create a favourable environment for growth. In this environment the CEE region is able to register positive growth rates in 2013 as well in 2014. Thanks to a positive difference of growth of 3% point in 2013/2014 CEE continues its catching up to the eurozone level of prosperity. Even compared with the US the CEE GDP growth difference seems to increase.

Opportunity and growth potential in Central & Eastern Europe

Opportunity and growth potential in Central & Eastern Europe 2

Improved prospects for exports and customers and entre-preneurs regaining trust in future economic developments stimulates private consumption expenditures and invest-ments in the region.

Poland shows a moderate growth performance. This due to its strong link to the euro region and its serious effort to comply with the famous Maastricht criteria as soon as pos-sible after stimulating the economy in earlier years.

For most countries we expect the favourable trend of 2013 to continue in 2014.

Slovenia, Estonia and Slovakia are the only countries in CEE to use euro as their domestic currency at present, other countries are also seeking to implement SEPA payment for-mats, with the euro commonly used as a trade currency, and to ensure cohesion and efficiency across the eurozone. As a leading SEPA bank, our advice and experience in SEPA implementation is proving particularly valuable to institutions and market infrastructure providers alike.

Access to our network and expertiseOpportunity and growth potential make the CEE region increasingly attractive for companies wishing to expand their business or set up a shared service centre. As a result of its extensive branch network and expertise, ING is the ideal gateway to the CEE region.

We feel very much at home across Europe with our footprint across 28 countries, in 21 countries through our own branch network and in seven additional countries via our alliance with Skandinaviska Enskilda Banken AB (SEB). This gives you first-hand knowledge of the domestic products and busi-ness culture in these markets.

ING focuses on local European markets but at the same time offers global overlay solutions. This means we are able to offer services ranging from local payments and collec-tions to pan-European payment factories and global overlay solutions. Furthermore we have direct and indirect access to local clearing systems in all CEE countries where we are present.

Figure 1 GDP growth in volume compared between regions

Source: ING FM Research

Figure 2 GDP in nominal value in US$ billion in 2013

Source: Oxford Economics

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Estonia

Latvia

Serbia

Lithuania

Slovenia

Bulgaria

Croatia

Slovak Republic

Hungary

Ukraine

Romania

Czech Republic

Kazakhstan

Poland

Turkey

RussiaRussia

Russia 2.142

Turkey 867

Poland 515

Kazakhstan 216

CzechRepublic 192

Romania 178

Ukraine 167Hungary 129

Slovak Republic 94Croatia 58Bulgaria 53

Slovenia 47Lithuania 45

Serbia 41Latvia 30

Estonia 23

Opportunity and growth potential in Central & Eastern Europe 3

With considerable expertise, on the ground presence and regional/global solutions, we are instrumental in facilitating your strategy for Central and Eastern Europe and beyond.

Products and servicesOur extensive presence in the region is supported by a wide range of products and services including:• payments and collections; standard/urgent payments

and payroll services• direct debits/standing orders• cash handling• domestic and international liquidity management solutions• payment factory solutions• short-term investment vehicles to increase interest

income.

Liquidity managementOur cash balancing solutions are ideal for clients wishing to increase control of their pan-European cash position or maximise their interest revenues by offsetting account bal-ances. Global cash concentration solutions can be provided

which ensures you maintain full flexibility when selecting your banking partners.

Payment factory solutionsCentralisation is one of the key trends today. Improved visibility and control are the driving factors behind centrali-sation and setting up a payment factory is one of the most commonly chosen solutions. A payment factory enables you to centralise the payables process, improve visibility and control and negotiate power with bank partners.

Online connectivityWeb-based technology is a key enabler to increasing vis-ibility and control of our clients’ accounts. ING Online is our internet banking tool – perfect for managing transactions in the sometimes complex and highly diverse CEE region. You can take advantage of one single portal for the entire region; accessible at any time and in any place. It provides real-time transaction information with balance reporting and is avail-able in local languages and in English.

For more information Please contact our Payments and Cash Management CEE Sales Desk on +31 (0)20 576 0674or visit www.ingcb.com

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DisclaimerPrepared by ING Bank N.V. (ING) for information only. Not an offer to purchase or sell any security. Information believed to be reliable but ING does not represent that it is accurate or complete. No liability accepted whatsoever for any loss from its use. Quotations, assumptions are indicative only. ING or its affiliates may have a material interest in the sub-ject or a related matter herein. Transactions by US persons in any security herein should be with ING Financial Markets LLC, which is responsible for distribution in the USA. ING Bank N.V. is authorised by the Dutch Central Bank.